In the House of Representatives, U. S.,

October 24, 2000.

Resolved, That the bill from the Senate (S. 1452) entitled ‘‘An Act to modernize the requirements under the National Manufactured Housing Construction and Safety Standards Act of 1974 and to establish a balanced consensus process for the development, revision, and interpretation of Federal construction and safety standards for manufactured

homes’’, do pass with the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 SEC. 1. SHORT TITLE AND TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘American Homeownership and Economic Opportunity

4 Act of 2000’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Findings and purpose.

TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

Sec. 101. Short title.

Sec. 102. Grants for regulatory barrier removal strategies.

Sec. 103. Regulatory barriers clearinghouse.
2

•S 1452 EAH

TITLE II—HOMEOWNERSHIP FOR WORKING FAMILIES

Sec. 201. Reduced downpayment requirements for loans for teachers, public safety

officers, and other uniformed municipal employees.

Sec. 202. Home equity conversion mortgages.

Sec. 203. Law enforcement officer homeownership pilot program.

Sec. 204. Assistance for self-help housing providers.

TITLE III—SECTION 8 HOMEOWNERSHIP OPTION

Sec. 301. Downpayment assistance.

Sec. 302. Pilot program for homeownership assistance for disabled families.

Sec. 303. Funding for pilot programs.

TITLE IV—PRIVATE MORTGAGE INSURANCE CANCELLATION AND

TERMINATION

Sec. 401. Short title.

Sec. 402. Changes in amortization schedule.

Sec. 403. Deletion of ambiguous references to residential mortgages.

Sec. 404. Cancellation rights after cancellation date.

Sec. 405. Clarification of cancellation and termination issues and lender paid

mortgage insurance disclosure requirements.

Sec. 406. Definitions.

TITLE V—NATIVE AMERICAN HOMEOWNERSHIP

Subtitle A—Native American Housing

Sec. 501. Lands title report commission.

Sec. 502. Loan guarantees.

Sec. 503. Native American housing assistance.

Subtitle B—Native Hawaiian Housing

Sec. 511. Short title.

Sec. 512. Findings.

Sec. 513. Housing assistance.

Sec. 514. Loan guarantees.

TITLE VI—MANUFACTURED HOUSING IMPROVEMENT

Sec. 601. Short title; references.

Sec. 602. Findings and purposes.

Sec. 603. Definitions.

Sec. 604. Federal manufactured home construction and safety standards.

Sec. 605. Abolishment of National Manufactured Home Advisory Council; manufactured home installation.

Sec. 606. Public information.

Sec. 607. Research, testing, development, and training.

Sec. 608. Prohibited acts.

Sec. 609. Fees.

Sec. 610. Dispute resolution.

Sec. 611. Elimination of annual reporting requirement.

Sec. 612. Effective date.

Sec. 613. Savings provisions.
3

•S 1452 EAH

TITLE VII—RURAL HOUSING HOMEOWNERSHIP.

Sec. 701. Guarantees for refinancing of rural housing loans.

Sec. 702. Promissory note requirement under housing repair loan program.

Sec. 703. Limited partnership eligibility for farm labor housing loans.

Sec. 704. Project accounting records and practices.

Sec. 705. Definition of rural area.

Sec. 706. Operating assistance for migrant farmworkers projects.

Sec. 707. Multifamily rental housing loan guarantee program.

Sec. 708. Enforcement provisions.

Sec. 709. Amendments to title 18 of United States Code.

TITLE VIII—HOUSING FOR ELDERLY AND DISABLED FAMILIES

Sec. 801. Short title.

Sec. 802. Regulations.

Sec. 803. Effective date.

Subtitle A—Refinancing for Section 202 Supportive Housing for the Elderly

Sec. 811. Prepayment and refinancing.

Subtitle B—Authorization of Appropriations for Supportive Housing for the

Elderly and Persons With Disabilities

Sec. 821. Supportive housing for elderly persons.

Sec. 822. Supportive housing for persons with disabilities.

Sec. 823. Service coordinators and congregate services for elderly and disabled

housing.

Subtitle C—Expanding Housing Opportunities for the Elderly and Persons

With Disabilities

PART 1—HOUSING FOR THE ELDERLY

Sec. 831. Eligibility of for-profit limited partnerships.

Sec. 832. Mixed funding sources.

Sec. 833. Authority to acquire structures.

Sec. 834. Use of project reserves.

Sec. 835. Commercial activities.

PART 2—HOUSING FOR PERSONS WITH DISABILITIES

Sec. 841. Eligibility of for-profit limited partnerships.

Sec. 842. Mixed funding sources.

Sec. 843. Tenant-based assistance.

Sec. 844. Use of project reserves.

Sec. 845. Commercial activities.

PART 3—OTHER PROVISIONS

Sec. 851. Service coordinators.

Subtitle D—Preservation of Affordable Housing Stock

Sec. 861. Section 236 assistance.
4

•S 1452 EAH

Subtitle E—Mortgage Insurance for Health Care Facilities

Sec. 871. Rehabilitation of existing hospitals, nursing homes, and other facilities.

Sec. 872. New integrated service facilities.

Sec. 873. Hospitals and hospital-based integrated service facilities.

TITLE IX—OTHER RELATED HOUSING PROVISIONS

Sec. 901. Extension of loan term for manufactured home lots.

Sec. 902. Use of section 8 vouchers for opt-outs.

Sec. 903. Maximum payment standard for enhanced vouchers.

Sec. 904. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units

in assisted projects.

TITLE X—BANKING AND HOUSING AGENCY REPORTS

Sec. 1001. Short title.

Sec. 1002. Amendments to the Federal Reserve Act.

Sec. 1003. Preservation of certain reporting requirements.

Sec. 1004. Coordination of reporting requirements.

Sec. 1005. Elimination of certain reporting requirements.

TITLE XI—NUMISMATIC COINS

Sec. 1101. Short title.

Sec. 1102. Clarification of Mint’s authority.

Sec. 1103. Additional report requirement.

TITLE XII—FINANCIAL REGULATORY RELIEF

Sec. 1200. Short title.

Subtitle A—Improving Monetary Policy and Financial Institution Management

Practices

Sec. 1201. Repeal of savings association liquidity provision.

Sec. 1202. Noncontrolling investments by savings association holding companies.

Sec. 1203. Repeal of deposit broker notification and recordkeeping requirement.

Sec. 1204. Expedited procedures for certain reorganizations.

Sec. 1205. National bank directors.

Sec. 1206. Amendment to National Bank Consolidation and Merger Act.

Sec. 1207. Loans on or purchases by institutions of their own stock; affiliations.

Sec. 1208. Purchased mortgage servicing rights.

Subtitle B—Streamlining Activities of Institutions

Sec. 1211. Call report simplification.

Subtitle C—Streamlining Agency Actions

Sec. 1221. Elimination of duplicative disclosure of fair market value of assets

and liabilities.

Sec. 1222. Payment of interest in receiverships with surplus funds.

Sec. 1223. Repeal of reporting requirement on differences in accounting standards.

Sec. 1224. Agency review of competitive factors in Bank Merger Act filings.
5

•S 1452 EAH

Subtitle D—Miscellaneous

Sec. 1231. Federal Reserve Board buildings.

Sec. 1232. Positions of Board of Governors of Federal Reserve System on the Executive Schedule.

Sec. 1233. Extension of time.

Subtitle E—Technical Corrections

Sec. 1241. Technical correction relating to deposit insurance funds.

Sec. 1242. Rules for continuation of deposit insurance for member banks converting charters.

Sec. 1243. Amendments to the Revised Statutes of the United States.

Sec. 1244. Conforming change to the International Banking Act of 1978.

1 SEC. 2. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—The Congress finds that—

3 (1) the priorities of our Nation should include

4 expanding homeownership opportunities by providing

5 access to affordable housing that is safe, clean, and

6 healthy;

7 (2) our Nation has an abundance of conventional

8 capital sources available for homeownership financ9 ing;

10 (3) experience with local homeownership pro11 grams has shown that if flexible capital sources are

12 available, communities possess ample will and cre13 ativity to provide opportunities uniquely designed to

14 assist their citizens in realizing the American dream

15 of homeownership; and

16 (4) each consumer should be afforded every rea17 sonable opportunity to access mortgage credit, to ob18 tain the lowest cost mortgages for which the consumer

19 can qualify, to know the true cost of the mortgage, to
6

•S 1452 EAH

1 be free of regulatory burdens, and to know what fac2 tors underlie a lender’s decision regarding the con3 sumer’s mortgage.

4 (b) PURPOSE.—It is the purpose of this Act—

5 (1) to encourage and facilitate homeownership by

6 families in the United States who are not otherwise

7 able to afford homeownership; and

8 (2) to expand homeownership through policies

9 that—

10 (A) promote the ability of the private sector

11 to produce affordable housing without excessive

12 government regulation;

13 (B) encourage tax incentives, such as the

14 mortgage interest deduction, at all levels of gov15 ernment; and

16 (C) facilitate the availability of flexible cap17 ital for homeownership opportunities and pro18 vide local governments with increased flexibility

19 under existing Federal programs to facilitate

20 homeownership.

21 TITLE I—REMOVAL OF BARRIERS

22 TO HOUSING AFFORDABILITY

23 SEC. 101. SHORT TITLE.

24 This title may be cited as the ‘‘Housing Affordability

25 Barrier Removal Act of 2000’’.
7

•S 1452 EAH

1 SEC. 102. GRANTS FOR REGULATORY BARRIER REMOVAL

2 STRATEGIES.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Sub4 section (a) of section 1204 of the Housing and Community

5 Development Act of 1992 (42 U.S.C. 12705c(a)) is amended

6 to read as follows:

7 ‘‘(a) FUNDING.—There is authorized to be appro8 priated for grants under subsections (b) and (c) such sums

9 as may be necessary for each of fiscal years 2001, 2002,

10 2003, 2004, and 2005.’’.

11 (b) CONSOLIDATION OF STATE AND LOCAL GRANTS.—

12 Subsection (b) of section 1204 of the Housing and Commu13 nity Development Act of 1992 (42 U.S.C. 12705c(b)) is

14 amended—

15 (1) in the subsection heading, by striking

16 ‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR17 ITY’’;

18 (2) in the matter preceding paragraph (1), by

19 inserting after ‘‘States’’ the following: ‘‘and units of

20 general local government (including consortia of such

21 governments)’’;

22 (3) in paragraph (3), by striking ‘‘a State pro23 gram to reduce State and local’’ and inserting ‘‘State,

24 local, or regional programs to reduce’’;

25 (4) in paragraph (4), by inserting ‘‘or local’’

26 after ‘‘State’’; and
8

•S 1452 EAH

1 (5) in paragraph (5), by striking ‘‘State’’.

2 (c) REPEAL OF LOCAL GRANTS PROVISION.—Section

3 1204 of the Housing and Community Development Act of

4 1992 (42 U.S.C. 12705c) is amended by striking subsection

5 (c).

6 (d) APPLICATION AND SELECTION.—The last sentence

7 of section 1204(e) of the Housing and Community Develop8 ment Act of 1992 (42 U.S.C. 12705c(e)) is amended—

9 (1) by striking ‘‘and for the selection of units of

10 general local government to receive grants under sub11 section (f)(2)’’; and

12 (2) by inserting before the period at the end the

13 following: ‘‘and such criteria shall require that grant

14 amounts be used in a manner consistent with the

15 strategy contained in the comprehensive housing af16 fordability strategy for the jurisdiction pursuant to

17 section 105(b)(4) of the Cranston-Gonzalez National

18 Affordable Housing Act’’.

19 (e) SELECTION OF GRANTEES.—Subsection (f) of sec20 tion 1204 of the Housing and Community Development Act

21 of 1992 (42 U.S.C. 12705c(f)) is amended to read as follows:

22 ‘‘(f) SELECTION OF GRANTEES.—To the extent

23 amounts are made available to carry out this section, the

24 Secretary shall provide grants on a competitive basis to eli-
9

•S 1452 EAH

1 gible grantees based on the proposed uses of such amounts,

2 as provided in applications under subsection (e).’’.

3 (f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of

4 the Housing and Community Development Act of 1974 (42

5 U.S.C. 5307(a)(1)) is amended—

6 (1) in subparagraph (G), by inserting ‘‘and’’

7 after the semicolon at the end;

8 (2) by striking subparagraph (H); and

9 (3) by redesignating subparagraph (I) as sub10 paragraph (H).

11 SEC. 103. REGULATORY BARRIERS CLEARINGHOUSE.

12 Section 1205 of the Housing and Community Develop13 ment Act of 1992 (42 U.S.C. 12705d) is amended—

14 (1) in subsection (a)—

15 (A) in the matter preceding paragraph (1),

16 by striking ‘‘receive, collect, process, and assem17 ble’’ and inserting ‘‘serve as a national reposi18 tory to receive, collect, process, assemble, and dis19 seminate’’;

20 (B) in paragraph (1)—

21 (i) by striking ‘‘, including’’ and in22 serting ‘‘(including’’; and

23 (ii) by inserting before the semicolon at

24 the end the following: ‘‘), and the prevalence
10

•S 1452 EAH

1 and effects on affordable housing of such

2 laws, regulations, and policies’’;

3 (C) in paragraph (2), by inserting before

4 the semicolon the following: ‘‘, including particu5 larly innovative or successful activities, strate6 gies, and plans’’; and

7 (D) in paragraph (3), by inserting before

8 the period at the end the following: ‘‘, including

9 particularly innovative or successful strategies,

10 activities, and plans’’;

11 (2) in subsection (b)—

12 (A) in paragraph (1), by striking ‘‘and’’ at

13 the end;

14 (B) in paragraph (2), by striking the period

15 at the end and inserting ‘‘; and’’; and

16 (C) by adding at the end the following new

17 paragraph:

18 ‘‘(3) by making available through a World Wide

19 Web site of the Department, by electronic mail, or

20 otherwise, provide to each housing agency of a unit

21 of general local government that serves an area hav22 ing a population greater than 100,000, an index of

23 all State and local strategies and plans submitted

24 under subsection (a) to the clearinghouse, which—
11

•S 1452 EAH

1 ‘‘(A) shall describe the types of barriers to

2 affordable housing that the strategy or plan was

3 designed to ameliorate or remove; and

4 ‘‘(B) shall, not later than 30 days after sub5 mission to the clearinghouse of any new strategy

6 or plan, be updated to include the new strategy

7 or plan submitted.’’; and

8 (3) by adding at the end the following new sub9 sections:

10 ‘‘(c) ORGANIZATION.—The clearinghouse under this

11 section shall be established within the Office of Policy Devel12 opment of the Department of Housing and Urban Develop13 ment and shall be under the direction of the Assistant Sec14 retary for Policy Development and Research.

15 ‘‘(d) TIMING.—The clearinghouse under this section

16 (as amended by section ll09 of the Housing Affordability

17 Barrier Removal Act of 2000) shall be established and com18 mence carrying out the functions of the clearinghouse under

19 this section not later than 1 year after the date of the enact20 ment of such Act. The Secretary of Housing and Urban De21 velopment may comply with the requirements under this

22 section by reestablishing the clearinghouse that was origi23 nally established to comply with this section and updating

24 and improving such clearinghouse to the extent necessary
12

•S 1452 EAH

1 to comply with the requirements of this section as in effect

2 pursuant to the enactment of such Act.’’.

3 TITLE II—HOMEOWNERSHIP FOR

4 WORKING FAMILIES

5 SEC. 201. REDUCED DOWNPAYMENT REQUIREMENTS FOR

6 LOANS FOR TEACHERS, PUBLIC SAFETY OFFI7 CERS, AND OTHER UNIFORMED MUNICIPAL

8 EMPLOYEES.

9 (a) IN GENERAL.—Section 203(b) of the National

10 Housing Act (12 U.S.C. 1709(b)) is amended by adding at

11 the end the following new paragraph:

12 ‘‘(11) REDUCED DOWNPAYMENT REQUIREMENTS

13 FOR TEACHERS AND UNIFORMED MUNICIPAL EMPLOY14 EES.—

15 ‘‘(A) IN GENERAL.—Notwithstanding para16 graph (2), in the case of a mortgage described in

17 subparagraph (B)—

18 ‘‘(i) the mortgage shall involve a prin19 cipal obligation in an amount that does not

20 exceed the sum of 99 percent of the ap21 praised value of the property and the total

22 amount of initial service charges, appraisal,

23 inspection, and other fees (as the Secretary

24 shall approve) paid in connection with the

25 mortgage;
13

•S 1452 EAH

1 ‘‘(ii) no other provision of this sub2 section limiting the principal obligation of

3 the mortgage based upon a percentage of the

4 appraised value of the property subject to

5 the mortgage shall apply; and

6 ‘‘(iii) the matter in paragraph (9) that

7 precedes the first proviso shall not apply

8 and the mortgage shall be executed by a

9 mortgagor who shall have paid on account

10 of the property at least 1 percent of the cost

11 of acquisition (as determined by the Sec12 retary) in cash or its equivalent.

13 ‘‘(B) MORTGAGES COVERED.—A mortgage

14 described in this subparagraph is a mortgage—

15 ‘‘(i) under which the mortgagor is an

16 individual who—

17 ‘‘(I) is employed on a part- or

18 full-time basis as: (aa) a teacher or ad19 ministrator in a public or private

20 school that provides elementary or sec21 ondary education, as determined under

22 State law, except that elementary edu23 cation shall include pre-Kindergarten

24 education, and except that secondary

25 education shall not include any edu-
14

•S 1452 EAH

1 cation beyond grade 12; (bb) a public

2 safety officer (as such term is defined

3 in section 1204 of the Omnibus Crime

4 Control and Safe Streets Act of 1968

5 (42 U.S.C. 3796b), except that such

6 term shall not include any officer serv7 ing a public agency of the Federal

8 Government); or (cc) a uniformed em9 ployee of a unit of general local gov10 ernment, including sanitation and

11 other maintenance workers; and

12 ‘‘(II) has not, during the 12-

13 month period ending upon the insur14 ance of the mortgage, had any present

15 ownership interest in a principal resi16 dence located in the jurisdiction de17 scribed in clause (ii);

18 ‘‘(ii) made for a property that is lo19 cated within the jurisdiction of—

20 ‘‘(I) in the case of a mortgage of

21 a mortgagor described in clause

22 (i)(I)(aa), the local educational agency

23 (as such term is defined in section

24 14101 of the Elementary and Sec25 ondary Education Act of 1965 (20
15

•S 1452 EAH

1 U.S.C. 8801)) for the school in which

2 the mortgagor is employed (or, in the

3 case of a mortgagor employed in a pri4 vate school, the local educational agen5 cy having jurisdiction for the area in

6 which the private school is located);

7 ‘‘(II) in the case of a mortgage of

8 a mortgagor described in clause

9 (i)(I)(bb), the jurisdiction served by the

10 public law enforcement agency, fire11 fighting agency, or rescue or ambu12 lance agency that employs the mort13 gagor; or

14 ‘‘(III) in the case of a mortgage of

15 a mortgagor described in clause

16 (i)(I)(cc), the unit of general local gov17 ernment that employs the mortgagor;

18 and

19 ‘‘(iii) that is closed on or before Sep20 tember 30, 2003.’’.

21 (b) DEFERRAL AND REDUCTION OF UP-FRONT PRE22 MIUM.—Section 203(c) of the National Housing Act (12

23 U.S.C. 1709(c)(2)) is amended—

24 (1) in paragraph (2), in the matter preceding

25 subparagraph (A), by striking ‘‘Notwithstanding’’
16

•S 1452 EAH

1 and inserting ‘‘Except as provided in paragraph (3)

2 and notwithstanding’’; and

3 (2) by adding at the end the following new para4 graph:

5 ‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE6 MIUM.—In the case of any mortgage described in subsection

7 (b)(11)(B):

8 ‘‘(A) Paragraph (2)(A) of this subsection (relat9 ing to collection of up-front premium payments) shall

10 not apply.

11 ‘‘(B) If, at any time during the 5-year period be12 ginning on the date of the insurance of the mortgage,

13 the mortgagor ceases to be employed as described in

14 subsection (b)(11)(B)(i)(I) or pays the principal obli15 gation of the mortgage in full, the Secretary shall at

16 such time collect a single premium payment in an

17 amount equal to the amount of the single premium

18 payment that, but for this paragraph, would have

19 been required under paragraph (2)(A) of this sub20 section with respect to the mortgage, as reduced by 20

21 percent of such amount for each successive 12-month

22 period completed during such 5-year period before

23 such cessation or prepayment occurs.’’.
17

•S 1452 EAH

1 SEC. 202. HOME EQUITY CONVERSION MORTGAGES.

2 (a) INSURANCE FOR MORTGAGES TO REFINANCE EX3 ISTING HECMS.—

4 (1) IN GENERAL.—Section 255 of the National

5 Housing Act (12 U.S.C. 1715z–20) is amended—

6 (A) by redesignating subsection (k) as sub7 section (m); and

8 (B) by inserting after subsection (j) the fol9 lowing new subsection:

10 ‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—

11 ‘‘(1) IN GENERAL.—The Secretary may, upon

12 application by a mortgagee, insure under this sub13 section any mortgage given to refinance an existing

14 home equity conversion mortgage insured under this

15 section.

16 ‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec17 retary shall, by regulation, require that the mortgagee

18 of a mortgage insured under this subsection, provide

19 to the mortgagor, within an appropriate time period

20 and in a manner established in such regulations, a

21 good faith estimate of: (A) the total cost of the refi22 nancing; and (B) the increase in the mortgagor’s

23 principal limit as measured by the estimated initial

24 principal limit on the mortgage to be insured under

25 this subsection less the current principal limit on the
18

•S 1452 EAH

1 home equity conversion mortgage that is being refi2 nanced and insured under this subsection.

3 ‘‘(3) WAIVER OF COUNSELING REQUIREMENT.—

4 The mortgagor under a mortgage insured under this

5 subsection may waive the applicability, with respect

6 to such mortgage, of the requirements under sub7 section (d)(2)(B) (relating to third party counseling),

8 but only if—

9 ‘‘(A) the mortgagor has received the disclo10 sure required under paragraph (2);

11 ‘‘(B) the increase in the principal limit de12 scribed in paragraph (2) exceeds the amount of

13 the total cost of refinancing (as described in such

14 paragraph) by an amount to be determined by

15 the Secretary; and

16 ‘‘(C) the time between the closing of the

17 original home equity conversion mortgage that is

18 refinanced through the mortgage insured under

19 this subsection and the application for a refi20 nancing mortgage insured under this subsection

21 does not exceed 5 years.

22 ‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith23 standing section 203(c)(2)(A), the Secretary may re24 duce the amount of the single premium payment oth25 erwise collected under such section at the time of the
19

•S 1452 EAH

1 insurance of a mortgage refinanced and insured

2 under this subsection. The amount of the single pre3 mium for mortgages refinanced under this subsection

4 shall be determined by the Secretary based on the ac5 tuarial study required under paragraph (5).

6 ‘‘(5) ACTUARIAL STUDY.—Not later than 180

7 days after the date of the enactment of the American

8 Homeownership and Economic Opportunity Act of

9 2000, the Secretary shall conduct an actuarial anal10 ysis to determine the adequacy of the insurance pre11 miums collected under the program under this sub12 section with respect to—

13 ‘‘(A) a reduction in the single premium

14 payment collected at the time of the insurance of

15 a mortgage refinanced and insured under this

16 subsection;

17 ‘‘(B) the establishment of a single national

18 limit on the benefits of insurance under sub19 section (g) (relating to limitation on insurance

20 authority); and

21 ‘‘(C) the combined effect of reduced insur22 ance premiums and a single national limitation

23 on insurance authority.

24 ‘‘(6) FEES.—The Secretary may establish a limit

25 on the origination fee that may be charged to a mort-
20

•S 1452 EAH

1 gagor under a mortgage insured under this sub2 section, except that such limitation shall provide that

3 the origination fee may be fully financed with the

4 mortgage and shall include any fees paid to cor5 respondent mortgagees approved by the Secretary.’’.

6 (2) REGULATIONS.—The Secretary shall issue

7 any final regulations necessary to implement the

8 amendments made by paragraph (1) of this sub9 section, which shall take effect not later than the expi10 ration of the 180-day period beginning on the date of

11 the enactment of this Act. The regulations shall be

12 issued after notice and opportunity for public com13 ment in accordance with the procedure under section

14 553 of title 5, United States Code, applicable to sub15 stantive rules (notwithstanding subsections (a)(2),

16 (b)(B), and (d)(3) of such section).

17 (b) HOUSING COOPERATIVES.—Section 255(b) of the

18 National Housing Act (12 U.S.C. 1715z–20(b)) is

19 amended—

20 (1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;

21 and

22 (2) by adding at the end the following new para23 graphs:

24 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means a

25 first mortgage or first lien on real estate, in fee sim-
21

•S 1452 EAH

1 ple, on all stock allocated to a dwelling in a residen2 tial cooperative housing corporation, or on a

3 leasehold—

4 ‘‘(A) under a lease for not less than 99

5 years that is renewable; or

6 ‘‘(B) under a lease having a period of not

7 less than 10 years to run beyond the maturity

8 date of the mortgage.

9 ‘‘(5) FIRST MORTGAGE.—The term ‘first mort10 gage’ means such classes of first liens as are com11 monly given to secure advances on, or the unpaid

12 purchase price of, real estate or all stock allocated to

13 a dwelling unit in a residential cooperative housing

14 corporation, under the laws of the State in which the

15 real estate or dwelling unit is located, together with

16 the credit instruments, if any, secured thereby.’’.

17 (c) WAIVER OF UP-FRONT PREMIUMS FOR MORT18 GAGES USED TO FUND LONG-TERM CARE INSURANCE.—

19 (1) IN GENERAL.—Section 255 of the National

20 Housing Act (12 U.S.C. 1715z–20) is amended by in21 serting after subsection (k) (as added by subsection

22 (a) of this section) the following new subsection:

23 ‘‘(l) WAIVER OF UP-FRONT PREMIUMS FOR MORT24 GAGES TO FUND LONG-TERM CARE INSURANCE.—
22

•S 1452 EAH

1 ‘‘(1) IN GENERAL.—In the case of any mortgage

2 insured under this section under which the total

3 amount (except as provided in paragraph (2)) of all

4 future payments described in subsection (b)(3) will be

5 used only for costs of a qualified long-term care insur6 ance contract that covers the mortgagor or members

7 of the household residing in the property that is sub8 ject to the mortgage, notwithstanding section

9 203(c)(2), the Secretary shall not charge or collect the

10 single premium payment otherwise required under

11 subparagraph (A) of such section to be paid at the

12 time of insurance.

13 ‘‘(2) AUTHORITY TO REFINANCE EXISTING

14 MORTGAGE AND FINANCE CLOSING COSTS.—A mort15 gage described in paragraph (1) may provide financ16 ing of amounts that are used to satisfy outstanding

17 mortgage obligations (in accordance with such limita18 tions as the Secretary shall prescribe) and any

19 amounts used for initial service charges, appraisal,

20 inspection, and other fees (as approved by the Sec21 retary) in connection with such mortgage, and the

22 amount of future payments described in subsection

23 (b)(3) under the mortgage shall be reduced accord24 ingly.
23

•S 1452 EAH

1 ‘‘(3) DEFINITION.—For purposes of this sub2 section, the term ‘qualified long-term care insurance

3 contract’ has the meaning given such term in section

4 7702B of the Internal Revenue Code of 1986 (26

5 U.S.C. 7702B)), except that such contract shall also

6 meet the requirements of—

7 ‘‘(A) sections 9 (relating to disclosure), 24

8 (relating to suitability), and 26 (relating to con9 tingent nonforfeiture) of the long-term care in10 surance model regulation promulgated by the

11 National Association of Insurance Commis12 sioners (as adopted as of September 2000); and

13 ‘‘(B) section 8 (relating to contingent non14 forfeiture) of the long-term care insurance model

15 Act promulgated by the National Association of

16 Insurance Commissioners (as adopted as of Sep17 tember 2000).’’.

18 (2) APPLICABILITY.—The provisions of section

19 255(l) of the National Housing Act (as added by

20 paragraph (1) of this subsection) shall apply only to

21 mortgages closed on or after April 1, 2001.

22 (d) STUDY OF SINGLE NATIONAL MORTGAGE LIMIT.—

23 The Secretary of Housing and Urban Development shall

24 conduct an actuarially based study of the effects of estab25 lishing, for mortgages insured under section 255 of the Na-
24

•S 1452 EAH

1 tional Housing Act (12 U.S.C. 1715z–20), a single max2 imum mortgage amount limitation in lieu of applicability

3 of section 203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The

4 study shall—

5 (1) examine the effects of establishing such limi6 tation at different dollar amounts; and

7 (2) examine the effects of such various limita8 tions on—

9 (A) the risks to the General Insurance Fund

10 established under section 519 of such Act;

11 (B) the mortgage insurance premiums that

12 would be required to be charged to mortgagors to

13 ensure actuarial soundness of such Fund; and

14 (C) take into consideration the various ap15 proaches to providing credit to borrowers who re16 finance home equity conversion mortgages in17 sured under section 255 of such Act.

18 Not later than 180 days after the date of the enactment of

19 this Act, the Secretary shall complete the study under this

20 subsection and submit a report describing the study and

21 the results of the study to the Committee on Banking and

22 Financial Services of the House of Representatives and to

23 the Committee on Banking, Housing, and Urban Affairs

24 of the Senate.
25

•S 1452 EAH

1 SEC. 203. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP

2 PILOT PROGRAM.

3 (a) ASSISTANCE FOR LAW ENFORCEMENT OFFI4 CERS.—The Secretary of Housing and Urban Development

5 shall carry out a pilot program in accordance with this

6 section to assist Federal, State, and local law enforcement

7 officers purchasing homes in locally-designated high-crime

8 areas.

9 (b) ELIGIBILITY.—To be eligible for assistance under

10 this section, a law enforcement officer shall—

11 (1) have completed not less than 6 months of

12 service as a law enforcement officer as of the date that

13 the law enforcement officer applies for such assistance;

14 and

15 (2) agree, in writing, to use the residence pur16 chased with such assistance as the primary residence

17 of the law enforcement officer for not less than 3 years

18 after the date of purchase.

19 (c) MORTGAGE ASSISTANCE.—If a law enforcement of20 ficer purchases a home in locally-designated high-crime

21 area and finances such purchase through a mortgage in22 sured under title II of the National Housing Act (12 U.S.C.

23 1707 et seq.), notwithstanding any provision of section 203

24 or any other provision of the National Housing Act, the

25 following shall apply:

26 (1) DOWNPAYMENT.—
26

•S 1452 EAH

1 (A) IN GENERAL.—There shall be no down2 payment required if the purchase price of the

3 property is not more than the reasonable value

4 of the property, as determined by the Secretary.

5 (B) PURCHASE PRICE EXCEEDS VALUE.—If

6 the purchase price of the property exceeds the

7 reasonable value of the property, as determined

8 by the Secretary, the required downpayment

9 shall be the difference between such reasonable

10 value and the purchase price.

11 (2) CLOSING COSTS.—The closing costs and

12 origination fee for such mortgage may be included in

13 the loan amount.

14 (3) INSURANCE PREMIUM PAYMENT.—There shall

15 be one insurance premium payment due on the mort16 gage. Such insurance premium payment—

17 (A) shall be equal to 1 percent of the loan

18 amount;

19 (B) shall be due and considered earned by

20 the Secretary at the time of the loan closing; and

21 (C) may be included in the loan amount

22 and paid from the loan proceeds.

23 (d) LOCALLY-DESIGNATED HIGH-CRIME AREA.—

24 (1) IN GENERAL.—Any unit of local government

25 may request that the Secretary designate any area
27

•S 1452 EAH

1 within the jurisdiction of that unit of local govern2 ment as a locally-designated high-crime area for pur3 poses of this section if the proposed area—

4 (A) has a crime rate that is significantly

5 higher than the crime rate of the non-designated

6 area that is within the jurisdiction of the unit

7 of local government; and

8 (B) has a population that is not more than

9 25 percent of the total population of area within

10 the jurisdiction of the unit of local government.

11 (2) DEADLINE FOR CONSIDERATION OF RE12 QUEST.—Not later than 60 days after receiving a re13 quest under paragraph (1), the Secretary shall ap14 prove or disapprove the request.

15 (e) LAW ENFORCEMENT OFFICER.—For purposes of

16 this section, the term ‘‘law enforcement officer’’ has such

17 meaning as the Secretary shall provide, except that such

18 term shall include any individual who is employed as an

19 officer in a correctional institution.

20 (f) SUNSET.—The Secretary shall not approve any ap21 plication for assistance under this section that is received

22 by the Secretary after the expiration of the 3-year period

23 beginning on the date that the Secretary first makes avail24 able assistance under the pilot program under this section.
28

•S 1452 EAH

1 SEC. 204. ASSISTANCE FOR SELF-HELP HOUSING PRO2 VIDERS.

3 (a) REAUTHORIZATION.—Subsection (p) of section 11

4 of the Housing Opportunity Program Extension Act of

5 1996 (42 U.S.C. 12805 note) is amended to read as follows:

6 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section such

8 sums as may be necessary for each of fiscal years 2001,

9 2002, and 2003.’’.

10 (b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of the

11 Housing Opportunity Program Extension Act of 1996 (42

12 U.S.C. 12805 note) is amended by inserting before the pe13 riod at the end the following: ‘‘, which may include reim14 bursing an organization, consortium, or affiliate, upon ap15 proval of any required environmental review, for nongrant

16 amounts of the organization, consortium, or affiliate ad17 vanced before such review to acquire land’’.

18 (c) DEADLINE FOR RECAPTURE OF FUNDS.—Section

19 11 of the Housing Opportunity Program Extension Act of

20 1996 (42 U.S.C. 12805 note) is amended—

21 (1) in subsection (i)(5)—

22 (A) by striking ‘‘if the organization or con23 sortia has not used any grant amounts’’ and in24 serting ‘‘the Secretary shall recapture any grant

25 amounts provided to the organization or con26 sortia that are not used’’;
29

•S 1452 EAH

1 (B) by striking ‘‘(or,’’ and inserting ‘‘, ex2 cept that such period shall be 36 months’’; and

3 (C) by striking ‘‘within 36 months), the

4 Secretary shall recapture such unused amounts’’

5 and inserting ‘‘and in the case of a grant

6 amounts provided to a local affiliate of the orga7 nization or consortia that is developing five or

8 more dwellings in connection with such grant

9 amounts’’; and

10 (2) in subsection (j), by inserting after ‘‘carry

11 out this section’’ the following: ‘‘and grant amounts

12 provided to a local affiliate of the organization or

13 consortia that is developing five or more dwellings in

14 connection with such grant amounts’’.

15 (d) TECHNICAL CORRECTIONS.—Section 11 of the

16 Housing Opportunity Program Extension Act of 1996 (42

17 U.S.C. 12805 note) is amended—

18 (1) in subsection (b)(4), by striking ‘‘Habitat for

19 Humanity International, its affiliates, and other’’;

20 and

21 (2) in subsection (e)(2), by striking ‘‘consoria’’

22 and inserting ‘‘consortia’’.
30

•S 1452 EAH

1 TITLE III—SECTION 8

2 HOMEOWNERSHIP OPTION

3 SEC. 301. DOWNPAYMENT ASSISTANCE.

4 (a) AMENDMENTS.—Section 8(y) of the United States

5 Housing Act of 1937 (42 U.S.C. 1437f(y)) is amended—

6 (1) by redesignating paragraph (7) as para7 graph (8); and

8 (2) by inserting after paragraph (6) the fol9 lowing new paragraph:

10 ‘‘(7) DOWNPAYMENT ASSISTANCE.—

11 ‘‘(A) AUTHORITY.—A public housing agency

12 may, in lieu of providing monthly assistance

13 payments under this subsection on behalf of a

14 family eligible for such assistance and at the dis15 cretion of the public housing agency, provide as16 sistance for the family in the form of a single

17 grant to be used only as a contribution toward

18 the downpayment required in connection with

19 the purchase of a dwelling for fiscal year 2000

20 and each fiscal year thereafter to the extent pro21 vided in advance in appropriations Acts.

22 ‘‘(B) AMOUNT.—The amount of a downpay23 ment grant on behalf of an assisted family may

24 not exceed the amount that is equal to the sum

25 of the assistance payments that would be made
31

•S 1452 EAH

1 during the first year of assistance on behalf of

2 the family, based upon the income of the family

3 at the time the grant is to be made.’’.

4 (b) EFFECTIVE DATE.—The amendments made by sub5 section (a) shall take effect immediately after the amend6 ments made by section 555(c) of the Quality Housing and

7 Work Responsibility Act of 1998 take effect pursuant to

8 such section.

9 SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST10 ANCE FOR DISABLED FAMILIES.

11 (a) IN GENERAL.—A public housing agency providing

12 tenant-based assistance on behalf of an eligible family under

13 section 8 of the United States Housing Act of 1937 (42

14 U.S.C. 1437f) may provide assistance for a disabled family

15 that purchases a dwelling unit (including a dwelling unit

16 under a lease-purchase agreement) that will be owned by

17 one or more members of the disabled family and will be

18 occupied by the disabled family, if the disabled family—

19 (1) purchases the dwelling unit before the expira20 tion of the 3-year period beginning on the date that

21 the Secretary first implements the pilot program

22 under this section;

23 (2) demonstrates that the disabled family has in24 come from employment or other sources (including

25 public assistance), as determined in accordance with
32

•S 1452 EAH

1 requirements of the Secretary, that is not less than

2 twice the payment standard established by the public

3 housing agency (or such other amount as may be es4 tablished by the Secretary);

5 (3) except as provided by the Secretary, dem6 onstrates at the time the disabled family initially re7 ceives tenant-based assistance under this section that

8 one or more adult members of the disabled family

9 have achieved employment for the period as the Sec10 retary shall require;

11 (4) participates in a homeownership and hous12 ing counseling program provided by the agency; and

13 (5) meets any other initial or continuing re14 quirements established by the public housing agency

15 in accordance with requirements established by the

16 Secretary.

17 (b) DETERMINATION OF AMOUNT OF ASSISTANCE.—

18 (1) IN GENERAL.—

19 (A) MONTHLY EXPENSES NOT EXCEEDING

20 PAYMENT STANDARD.—If the monthly home21 ownership expenses, as determined in accordance

22 with requirements established by the Secretary,

23 do not exceed the payment standard, the monthly

24 assistance payment shall be the amount by which

25 the homeownership expenses exceed the highest of
33

•S 1452 EAH

1 the following amounts, rounded to the nearest

2 dollar:

3 (i) 30 percent of the monthly adjusted

4 income of the disabled family.

5 (ii) 10 percent of the monthly income

6 of the disabled family.

7 (iii) If the disabled family is receiving

8 payments for welfare assistance from a pub9 lic agency, and a portion of those payments,

10 adjusted in accordance with the actual

11 housing costs of the disabled family, is spe12 cifically designated by that agency to meet

13 the housing costs of the disabled family, the

14 portion of those payments that is so des15 ignated.

16 (B) MONTHLY EXPENSES EXCEED PAYMENT

17 STANDARD.—If the monthly homeownership ex18 penses, as determined in accordance with re19 quirements established by the Secretary, exceed

20 the payment standard, the monthly assistance

21 payment shall be the amount by which the appli22 cable payment standard exceeds the highest of the

23 amounts under clauses (i), (ii), and (iii) of sub24 paragraph (A).

25 (2) CALCULATION OF AMOUNT.—
34

•S 1452 EAH

1 (A) LOW-INCOME FAMILIES.—A disabled

2 family that is a low-income family shall be eligi3 ble to receive 100 percent of the amount cal4 culated under paragraph (1).

5 (B) INCOME BETWEEN 81 AND 89 PERCENT

6 OF MEDIAN.—A disabled family whose income is

7 between 81 and 89 percent of the median for the

8 area shall be eligible to receive 66 percent of the

9 amount calculated under paragraph (1).

10 (C) INCOME BETWEEN 90 AND 99 PERCENT

11 OF MEDIAN.—A disabled family whose income is

12 between 90 and 99 percent of the median for the

13 area shall be eligible to receive 33 percent of the

14 amount calculated under paragraph (1).

15 (D) INCOME MORE THAN 99 PERCENT OF

16 MEDIAN.—A disabled family whose income is

17 more than 99 percent of the median for the area

18 shall not be eligible to receive assistance under

19 this section.

20 (c) INSPECTIONS AND CONTRACT CONDITIONS.—

21 (1) IN GENERAL.—Each contract for the pur22 chase of a dwelling unit to be assisted under this sec23 tion shall—
35

•S 1452 EAH

1 (A) provide for pre-purchase inspection of

2 the dwelling unit by an independent profes3 sional; and

4 (B) require that any cost of necessary re5 pairs be paid by the seller.

6 (2) ANNUAL INSPECTIONS NOT REQUIRED.—The

7 requirement under subsection (o)(8)(A)(ii) of section 8

8 of the United States Housing Act of 1937 for annual

9 inspections shall not apply to dwelling units assisted

10 under this section.

11 (d) OTHER AUTHORITY OF THE SECRETARY.—The

12 Secretary may—

13 (1) limit the term of assistance for a disabled

14 family assisted under this section;

15 (2) provide assistance for a disabled family for

16 the entire term of a mortgage for a dwelling unit if

17 the disabled family remains eligible for such assist18 ance for such term; and

19 (3) modify the requirements of this section as the

20 Secretary determines to be necessary to make appro21 priate adaptations for lease-purchase agreements.

22 (e) ASSISTANCE PAYMENTS SENT TO LENDER.—The

23 Secretary shall remit assistance payments under this sec24 tion directly to the mortgagee of the dwelling unit pur-
36

•S 1452 EAH

1 chased by the disabled family receiving such assistance pay2 ments.

3 (f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As4 sistance under this section shall not be subject to the re5 quirements of the following provisions:

6 (1) Subsection (c)(3)(B) of section 8 of the

7 United States Housing Act of 1937.

8 (2) Subsection (d)(1)(B)(i) of section 8 of the

9 United States Housing Act of 1937.

10 (3) Any other provisions of section 8 of the

11 United States Housing Act of 1937 governing max12 imum amounts payable to owners and amounts pay13 able by assisted families.

14 (4) Any other provisions of section 8 of the

15 United States Housing Act of 1937 concerning con16 tracts between public housing agencies and owners.

17 (5) Any other provisions of the United States

18 Housing Act of 1937 that are inconsistent with the

19 provisions of this section.

20 (g) REVERSION TO RENTAL STATUS.—

21 (1) NON-FHA MORTGAGES.—If a disabled family

22 receiving assistance under this section defaults under

23 a mortgage not insured under the National Housing

24 Act, the disabled family may not continue to receive

25 rental assistance under section 8 of the United States
37

•S 1452 EAH

1 Housing Act of 1937 unless it complies with require2 ments established by the Secretary.

3 (2) ALL MORTGAGES.—A disabled family receiv4 ing assistance under this section that defaults under

5 a mortgage may not receive assistance under this sec6 tion for occupancy of another dwelling unit owned by

7 1 or more members of the disabled family.

8 (3) EXCEPTION.—This subsection shall not apply

9 if the Secretary determines that the disabled family

10 receiving assistance under this section defaulted under

11 a mortgage due to catastrophic medical reasons or

12 due to the impact of a federally declared major dis13 aster or emergency.

14 (h) REGULATIONS.—Not later than 90 days after the

15 date of the enactment of this Act, the Secretary shall issue

16 regulations to implement this section. Such regulations may

17 not prohibit any public housing agency providing tenant18 based assistance on behalf of an eligible family under sec19 tion 8 of the United States Housing Act of 1937 from par20 ticipating in the pilot program under this section.

21 (i) DEFINITION OF DISABLED FAMILY.—For the pur22 poses of this section, the term ‘‘disabled family’’ has the

23 meaning given the term ‘‘person with disabilities’’ in sec24 tion 811(k)(2) of the Cranston-Gonzalez National Affordable

25 Housing Act (42 U.S.C. 8013(k)(2)).
38

•S 1452 EAH

1 SEC. 303. FUNDING FOR PILOT PROGRAMS.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

3 authorized to be appropriated such sums as may be nec4 essary for fiscal year 2001 for assistance in connection with

5 the existing homeownership pilot programs carried out

6 under the demonstration program authorized under to sec7 tion 555(b) of the Quality Housing and Work Responsi8 bility Act of 1998 (Public Law 105–276; 112 Stat. 2613).

9 (b) USE.—Subject to subsection (c), amounts made

10 available pursuant to this section shall be used only through

11 such homeownership pilot programs to provide, on behalf

12 of families participating in such programs, amounts for

13 downpayments in connection with dwellings purchased by

14 such families using assistance made available under section

15 8(y) of the United States Housing Act of 1937 (42 U.S.C.

16 1437f(y)). No such downpayment grant may exceed 20 per17 cent of the appraised value of the dwelling purchased with

18 assistance under such section 8(y).

19 (c) MATCHING REQUIREMENT.—The amount of assist20 ance made available under this section for any existing

21 homeownership pilot program may not exceed twice the

22 amount donated from sources other than this section for use

23 under the program for assistance described in subsection

24 (b). Amounts donated from other sources may include

25 amounts from State housing finance agencies and Neighbor26 hood Housing Services of America.
39

•S 1452 EAH

1 TITLE IV—PRIVATE MORTGAGE

2 INSURANCE CANCELLATION

3 AND TERMINATION

4 SEC. 401. SHORT TITLE.

5 This title may be cited as the ‘‘Private Mortgage Insur6 ance Technical Corrections and Clarification Act’’.

7 SEC. 402. CHANGES IN AMORTIZATION SCHEDULE.

8 (a) TREATMENT OF ADJUSTABLE RATE MORT9 GAGES.—The Homeowners Protection Act of 1998 (12

10 U.S.C. 4901 et seq.) is amended—

11 (1) in section 2—

12 (A) in paragraph (2)(B)(i), by striking

13 ‘‘amortization schedules’’ and inserting ‘‘the am14 ortization schedule then in effect’’;

15 (B) in paragraph (16)(B), by striking ‘‘am16 ortization schedules’’ and inserting ‘‘the amorti17 zation schedule then in effect’’;

18 (C) by redesignating paragraphs (6)

19 through (16) (as amended by the preceding pro20 visions of this paragraph) as paragraphs (8)

21 through (18), respectively; and

22 (D) by inserting after paragraph (5) the fol23 lowing new paragraph:

24 ‘‘(6) AMORTIZATION SCHEDULE THEN IN EF25 FECT.—The term ‘amortization schedule then in ef-
40

•S 1452 EAH

1 fect’ means, with respect to an adjustable rate mort2 gage, a schedule established at the time at which the

3 residential mortgage transaction is consummated or,

4 if such schedule has been changed or recalculated, is

5 the most recent schedule under the terms of the note

6 or mortgage, which shows—

7 ‘‘(A) the amount of principal and interest

8 that is due at regular intervals to retire the

9 principal balance and accrued interest over the

10 remaining amortization period of the loan; and

11 ‘‘(B) the unpaid balance of the loan after

12 each such scheduled payment is made.’’; and

13 (2) in section 3(f)(1)(B)(ii), by striking ‘‘amorti14 zation schedules’’ and inserting ‘‘the amortization

15 schedule then in effect’’.

16 (b) TREATMENT OF BALLOON MORTGAGES.—Para17 graph (1) of section 2 of the Homeowners Protection Act

18 of 1998 (12 U.S.C. 4901(1)) is amended by adding at the

19 end the following new sentence: ‘‘A residential mortgage

20 that (A) does not fully amortize over the term of the obliga21 tion, and (B) contains a conditional right to refinance or

22 modify the unamortized principal at the maturity date of

23 the term, shall be considered to be an adjustable rate mort24 gage for purposes of this Act.’’.

25 (c) TREATMENT OF LOAN MODIFICATIONS.—
41

•S 1452 EAH

1 (1) IN GENERAL.—Section 3 of the Homeowners

2 Protection Act of 1998 (12 U.S.C. 4902) is

3 amended—

4 (A) by redesignating subsections (d) through

5 (f) as subsections (e) through (g), respectively;

6 and

7 (B) by inserting after subsection (c) the fol8 lowing new subsection:

9 ‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a

10 mortgagor and mortgagee (or holder of the mortgage) agree

11 to a modification of the terms or conditions of a loan pursu12 ant to a residential mortgage transaction, the cancellation

13 date, termination date, or final termination shall be recal14 culated to reflect the modified terms and conditions of such

15 loan.’’.

16 (2) CONFORMING AMENDMENTS.—Section 4(a) of

17 the Homeowners Protection Act of 1998 (12 U.S.C.

18 4903(a)) is amended—

19 (A) in paragraph (1)—

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘section 3(f)(1)’’ and

22 inserting ‘‘section 3(g)(1)’’;

23 (ii) in subparagraph (A)(ii)(IV), by

24 striking ‘‘section 3(f)’’ and inserting ‘‘sec25 tion 3(g)’’; and
42

•S 1452 EAH

1 (iii) in subparagraph (B)(iii), by

2 striking ‘‘section 3(f)’’ and inserting ‘‘sec3 tion 3(g)’’; and

4 (B) in paragraph (2), by striking ‘‘section

5 3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.

6 SEC. 403. DELETION OF AMBIGUOUS REFERENCES TO RESI7 DENTIAL MORTGAGES.

8 (a) TERMINATION OF PRIVATE MORTGAGE INSUR9 ANCE.—Section 3 of the Homeowners Protection Act of 1998

10 (12 U.S.C. 4902) is amended—

11 (1) in subsection (c), by inserting ‘‘on residential

12 mortgage transactions’’ after ‘‘imposed’’; and

13 (2) in subsection (g) (as so redesignated by the

14 preceding provisions of this title)—

15 (A) in paragraph (1), in the matter pre16 ceding subparagraph (A), by striking ‘‘mortgage

17 or’’;

18 (B) in paragraph (2), by striking ‘‘mort19 gage or’’; and

20 (C) in paragraph (3), by striking ‘‘mort21 gage or’’ and inserting ‘‘residential mortgage or

22 residential’’.

23 (b) DISCLOSURE REQUIREMENTS.—Section 4 of the

24 Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))

25 is amended—
43

•S 1452 EAH

1 (1) in subsection (a)—

2 (A) in paragraph (1)—

3 (i) by striking ‘‘mortgage or’’ the first

4 place it appears; and

5 (ii) by striking ‘‘mortgage or’’ the sec6 ond place it appears and inserting ‘‘resi7 dential’’; and

8 (B) in paragraph (2), by striking ‘‘mort9 gage or’’ and inserting ‘‘residential’’;

10 (2) in subsection (c), by striking ‘‘paragraphs

11 (1)(B) and (3) of subsection (a)’’ and inserting ‘‘sub12 section (a)(3)’’; and

13 (3) in subsection (d), by inserting before the pe14 riod at the end the following: ‘‘, which disclosures

15 shall relate to the mortgagor’s rights under this Act’’.

16 (c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID

17 MORTGAGE INSURANCE.—Section 6 of the Homeowners

18 Protection Act of 1998 (12 U.S.C. 4905) is amended—

19 (1) in subsection (c)—

20 (A) in the matter preceding paragraph (1),

21 by striking ‘‘a residential mortgage or’’; and

22 (B) in paragraph (2), by inserting ‘‘trans23 action’’ after ‘‘residential mortgage’’; and

24 (2) in subsection (d), by inserting ‘‘transaction’’

25 after ‘‘residential mortgage’’.
44

•S 1452 EAH

1 SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION

2 DATE.

3 Section 3 of the Homeowners Protection Act of 1998

4 (12 U.S.C. 4902) is amended—

5 (1) in subsection (a)—

6 (A) in the matter preceding paragraph (1),

7 by inserting after ‘‘cancellation date’’ the fol8 lowing: ‘‘or any later date that the mortgagor

9 fulfills all of the requirements under paragraphs

10 (1) through (4)’’;

11 (B) in paragraph (2), by striking ‘‘and’’ at

12 the end;

13 (C) by redesignating paragraph (3) as

14 paragraph (4); and

15 (D) by inserting after paragraph (2) the fol16 lowing new paragraph:

17 ‘‘(3) is current on the payments required by the

18 terms of the residential mortgage transaction; and’’;

19 and

20 (2) in subsection (e)(1)(B) (as so redesignated by

21 the preceding provisions of this title), by striking

22 ‘‘subsection (a)(3)’’ and inserting ‘‘subsection (a)(4)’’.
45

•S 1452 EAH

1 SEC. 405. CLARIFICATION OF CANCELLATION AND TERMI2 NATION ISSUES AND LENDER PAID MORT3 GAGE INSURANCE DISCLOSURE REQUIRE4 MENTS.

5 (a) GOOD PAYMENT HISTORY.—Section 2(4) of the

6 Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))

7 is amended—

8 (1) in subparagraph (A)—

9 (A) by inserting ‘‘the later of (i)’’ before

10 ‘‘the date’’; and

11 (B) by inserting ‘‘, or (ii) the date that the

12 mortgagor submits a request for cancellation

13 under section 3(a)(1)’’ before the semicolon; and

14 (2) in subparagraph (B)—

15 (A) by inserting ‘‘the later of (i)’’ before

16 ‘‘the date’’; and

17 (B) by inserting ‘‘, or (ii) the date that the

18 mortgagor submits a request for cancellation

19 under section 3(a)(1)’’ before the period at the

20 end.

21 (b) AUTOMATIC TERMINATION.—Paragraph (2) of sec22 tion 3(b) of the Homeowners Protection Act of 1998 (12

23 U.S.C. 4902(b)(2)) is amended to read as follows:

24 ‘‘(2) if the mortgagor is not current on the termi25 nation date, on the first day of the first month begin26 ning after the date that the mortgagor becomes cur-
46

•S 1452 EAH

1 rent on the payments required by the terms of the res2 idential mortgage transaction.’’

3 (c) PREMIUM PAYMENTS.—Section 3 of the Home4 owners Protection Act of 1998 (12 U.S.C. 4902) is amended

5 by adding at the end the following new subsection:

6 ‘‘(h) ACCRUED OBLIGATION FOR PREMIUM PAY7 MENTS.—The cancellation or termination under this section

8 of the private mortgage insurance of a mortgagor shall not

9 affect the rights of any mortgagee, servicer, or mortgage in10 surer to enforce any obligation of such mortgagor for pre11 mium payments accrued prior to the date on which such

12 cancellation or termination occurred.’’.

13 SEC. 406. DEFINITIONS.

14 (a) REFINANCED.—Section 6(c)(1)(B)(ii) of the Home15 owners Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii))

16 is amended by inserting after ‘‘refinanced’’ the following:

17 ‘‘(under the meaning given such term in the regulations

18 issued by the Board of Governors of the Federal Reserve

19 System to carry out the Truth in Lending Act (15 U.S.C.

20 1601 et seq.))’’.

21 (b) MIDPOINT OF THE AMORTIZATION PERIOD.—Sec22 tion 2 of the Homeowners Protection Act of 1998 (12 U.S.C.

23 4901) is amended by inserting after paragraph (6) (as

24 added by the preceding provisions of this title) the following

25 new paragraph:
47

•S 1452 EAH

1 ‘‘(7) MIDPOINT OF THE AMORTIZATION PE2 RIOD.—The term ‘midpoint of the amortization pe3 riod’ means, with respect to a residential mortgage

4 transaction, the point in time that is halfway through

5 the period that begins upon the first day of the amor6 tization period established at the time a residential

7 mortgage transaction is consummated and ends upon

8 the completion of the entire period over which the

9 mortgage is scheduled to be amortized.’’.

10 (c) ORIGINAL VALUE.—Section 2(12) of the Home11 owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as so

12 redesignated by the preceding provisions of this title) is

13 amended—

14 (1) by inserting ‘‘transaction’’ after ‘‘a residen15 tial mortgage’’; and

16 (2) by adding at the end the following new sen17 tence: ‘‘In the case of a residential mortgage trans18 action for refinancing the principal residence of the

19 mortgagor, such term means only the appraised value

20 relied upon by the mortgagee to approve the refinance

21 transaction.’’.

22 (d) PRINCIPAL RESIDENCE.—Section 2 of the Home23 owners Protection Act of 1998 (12 U.S.C. 4901) is

24 amended—
48

•S 1452 EAH

1 (1) in paragraph (14) (as so redesignated by the

2 preceding provisions of this title) by striking ‘‘pri3 mary’’ and inserting ‘‘principal’’; and

4 (2) in paragraph (15) (as so redesignated by the

5 preceding provisions of this title) by striking ‘‘pri6 mary’’ and inserting ‘‘principal’’;

7 TITLE V—NATIVE AMERICAN

8 HOMEOWNERSHIP

9 Subtitle A—Native American

10 Housing

11 SEC. 501. LANDS TITLE REPORT COMMISSION.

12 (a) ESTABLISHMENT.—Subject to sums being provided

13 in advance in appropriations Acts, there is established a

14 Commission to be known as the Lands Title Report Com15 mission (hereafter in this section referred to as the ‘‘Com16 mission’’) to facilitate home loan mortgages on Indian trust

17 lands. The Commission will be subject to oversight by the

18 Committee on Banking and Financial Services of the House

19 of Representatives and the Committee on Banking, Hous20 ing, and Urban Affairs of the Senate.

21 (b) MEMBERSHIP.—

22 (1) APPOINTMENT.—The Commission shall be

23 composed of 12 members, appointed not later than 90

24 days after the date of the enactment of this Act as fol25 lows:
49

•S 1452 EAH

1 (A) Four members shall be appointed by the

2 President.

3 (B) Four members shall be appointed by the

4 Chairperson of the Committee on Banking and

5 Financial Services of the House of Representa6 tives.

7 (C) Four members shall be appointed by the

8 Chairperson of the Committee on Banking,

9 Housing, and Urban Affairs of the Senate.

10 (2) QUALIFICATIONS.—

11 (A) MEMBERS OF TRIBES.—At all times,

12 not less than eight of the members of the Com13 mission shall be members of federally recognized

14 Indian tribes.

15 (B) EXPERIENCE IN LAND TITLE MAT16 TERS.—All members of the Commission shall

17 have experience in and knowledge of land title

18 matters relating to Indian trust lands.

19 (3) CHAIRPERSON.—The Chairperson of the

20 Commission shall be one of the members of the Com21 mission appointed under paragraph (1)(C), as elected

22 by the members of the Commission.

23 (4) VACANCIES.—Any vacancy on the Commis24 sion shall not affect its powers, but shall be filled in
50

•S 1452 EAH

1 the manner in which the original appointment was

2 made.

3 (5) TRAVEL EXPENSES.—Members of the Com4 mission shall serve without pay, but each member

5 shall receive travel expenses, including per diem in

6 lieu of subsistence, in accordance with sections 5702

7 and 5703 of title 5, United States Code.

8 (c) INITIAL MEETING.—The Chairperson of the Com9 mission shall call the initial meeting of the Commission.

10 Such meeting shall be held within 30 days after the Chair11 person of the Commission determines that sums sufficient

12 for the Commission to carry out its duties under this Act

13 have been appropriated for such purpose.

14 (d) DUTIES.—The Commission shall analyze the sys15 tem of the Bureau of Indian Affairs of the Department of

16 the Interior for maintaining land ownership records and

17 title documents and issuing certified title status reports re18 lating to Indian trust lands and, pursuant to such analysis,

19 determine how best to improve or replace the system—

20 (1) to ensure prompt and accurate responses to

21 requests for title status reports;

22 (2) to eliminate any backlog of requests for title

23 status reports; and

24 (3) to ensure that the administration of the sys25 tem will not in any way impair or restrict the ability
51

•S 1452 EAH

1 of Native Americans to obtain conventional loans for

2 purchase of residences located on Indian trust lands,

3 including any actions necessary to ensure that the

4 system will promptly be able to meet future demands

5 for certified title status reports, taking into account

6 the anticipated complexity and volume of such re7 quests.

8 (e) REPORT.—Not later than the date of the termi9 nation of the Commission under subsection (h), the Com10 mission shall submit a report to the Committee on Banking

11 and Financial Services of the House of Representatives and

12 the Committee on Banking, Housing, and Urban Affairs

13 of the Senate describing the analysis and determinations

14 made pursuant to subsection (d).

15 (f) POWERS.—

16 (1) HEARINGS AND SESSIONS.—The Commission

17 may, for the purpose of carrying out this section, hold

18 hearings, sit and act at times and places, take testi19 mony, and receive evidence as the Commission con20 siders appropriate.

21 (2) STAFF OF FEDERAL AGENCIES.—Upon re22 quest of the Commission, the head of any Federal de23 partment or agency may detail, on a reimbursable

24 basis, any of the personnel of that department or
52

•S 1452 EAH

1 agency to the Commission to assist it in carrying out

2 its duties under this section.

3 (3) OBTAINING OFFICIAL DATA.—The Commis4 sion may secure directly from any department or

5 agency of the United States information necessary to

6 enable it to carry out this section. Upon request of the

7 Chairperson of the Commission, the head of that de8 partment or agency shall furnish that information to

9 the Commission.

10 (4) MAILS.—The Commission may use the

11 United States mails in the same manner and under

12 the same conditions as other departments and agen13 cies of the United States.

14 (5) ADMINISTRATIVE SUPPORT SERVICES.—Upon

15 the request of the Commission, the Administrator of

16 General Services shall provide to the Commission, on

17 a reimbursable basis, the administrative support serv18 ices necessary for the Commission to carry out its du19 ties under this section.

20 (6) STAFF.—The Commission may appoint per21 sonnel as it considers appropriate, subject to the pro22 visions of title 5, United States Code, governing ap23 pointments in the competitive service, and shall pay

24 such personnel in accordance with the provisions of

25 chapter 51 and subchapter III of chapter 53 of that
53

•S 1452 EAH

1 title relating to classification and General Schedule

2 pay rates.

3 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

4 authorized to be appropriated to carry out this section such

5 sums as may be necessary, and any amounts appropriated

6 pursuant to this subsection shall remain available until ex7 pended.

8 (h) TERMINATION.—The Commission shall terminate

9 1 year after the date of the initial meeting of the Commis10 sion.

11 SEC. 502. LOAN GUARANTEES.

12 Section 184(i) of the Housing and Community Devel13 opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is amended—

14 (1) in paragraph (5), by striking subparagraph

15 (C) and inserting the following new subparagraph:

16 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE17 GATE PRINCIPAL AMOUNT.—Subject to the limi18 tations in subparagraphs (A) and (B), the Sec19 retary may enter into commitments to guarantee

20 loans under this section in each fiscal year with

21 an aggregate outstanding principal amount not

22 exceeding such amount as may be provided in

23 appropriation Acts for such fiscal year.’’; and
54

•S 1452 EAH

1 (2) in paragraph (7), by striking ‘‘each of fiscal

2 years 1997, 1998, 1999, 2000, and 2001’’ and insert3 ing ‘‘each fiscal year’’.

4 SEC. 503. NATIVE AMERICAN HOUSING ASSISTANCE.

5 (a) RESTRICTION ON WAIVER AUTHORITY.—

6 (1) IN GENERAL.—Section 101(b)(2) of the Na7 tive American Housing Assistance and Self-Deter8 mination Act of 1996 (25 U.S.C. 4111(b)(2)) is

9 amended by striking ‘‘if the Secretary’’ and all that

10 follows through the period at the end and inserting

11 the following: ‘‘for a period of not more than 90 days,

12 if the Secretary determines that an Indian tribe has

13 not complied with, or is unable to comply with, those

14 requirements due to exigent circumstances beyond the

15 control of the Indian tribe.’’.

16 (2) LOCAL COOPERATION AGREEMENT.—Section

17 101(c) of the Native American Housing Assistance

18 and Self-Determination Act of 1996 (25 U.S.C.

19 4111(c)) is amended by adding at the end the fol20 lowing: ‘‘The Secretary may waive the requirements

21 of this subsection and subsection (d) if the recipient

22 has made a good faith effort to fulfill the requirements

23 of this subsection and subsection (d) and agrees to

24 make payments in lieu of taxes to the appropriate

25 taxing authority in an amount consistent with the re-
55

•S 1452 EAH

1 quirements of subsection (d)(2) until such time as the

2 matter of making such payments has been resolved in

3 accordance with subsection (d).’’.

4 (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW5 INCOME.—Section 102(c) of the Native American Housing

6 Assistance and Self-Determination Act of 1996 (25 U.S.C.

7 4112(c)) is amended by adding at the end the following:

8 ‘‘(6) CERTAIN FAMILIES.—With respect to assist9 ance provided under section 201(b)(2) by a recipient

10 to Indian families that are not low-income families,

11 evidence that there is a need for housing for each such

12 family during that period that cannot reasonably be

13 met without such assistance.’’.

14 (c) ELIMINATION OF WAIVER AUTHORITY FOR SMALL

15 TRIBES.—Section 102 of the Native American Housing As16 sistance and Self-Determination Act of 1996 (25 U.S.C.

17 4112) is amended—

18 (1) by striking subsection (f); and

19 (2) by redesignating subsection (g) as subsection

20 (f).

21 (d) ENVIRONMENTAL COMPLIANCE.—Section 105 of

22 the Native American Housing Assistance and Self-Deter23 mination Act of 1996 (25 U.S.C. 4115) is amended by add24 ing at the end the following:
56

•S 1452 EAH

1 ‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary

2 may waive the requirements under this section if the Sec3 retary determines that a failure on the part of a recipient

4 to comply with provisions of this section—

5 ‘‘(1) will not frustrate the goals of the National

6 Environmental Policy Act of 1969 (42 U.S.C. 4331 et

7 seq.) or any other provision of law that furthers the

8 goals of that Act;

9 ‘‘(2) does not threaten the health or safety of the

10 community involved by posing an immediate or long11 term hazard to residents of that community;

12 ‘‘(3) is a result of inadvertent error, including

13 an incorrect or incomplete certification provided

14 under subsection (c)(1); and

15 ‘‘(4) may be corrected through the sole action of

16 the recipient.’’.

17 (e) ELIGIBILITY OF LAW ENFORCEMENT OFFICERS

18 FOR HOUSING ASSISTANCE.—Section 201(b) of the Native

19 American Housing Assistance and Self-Determination Act

20 of 1996 (25 U.S.C. 4131(b)) is amended—

21 (1) in paragraph (1), by striking ‘‘paragraph

22 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’;

23 (2) by redesignating paragraphs (4) and (5) as

24 paragraphs (5) and (6), respectively; and
57

•S 1452 EAH

1 (3) by inserting after paragraph (3) the fol2 lowing new paragraph:

3 ‘‘(4) LAW ENFORCEMENT OFFICERS.—A recipient

4 may provide housing or housing assistance provided

5 through affordable housing activities assisted with

6 grant amounts under this Act for a law enforcement

7 officer on an Indian reservation or other Indian area,

8 if—

9 ‘‘(A) the officer—

10 ‘‘(i) is employed on a full-time basis by

11 the Federal Government or a State, county,

12 or tribal government; and

13 ‘‘(ii) in implementing such full-time

14 employment, is sworn to uphold, and make

15 arrests for, violations of Federal, State,

16 county, or tribal law; and

17 ‘‘(B) the recipient determines that the pres18 ence of the law enforcement officer on the Indian

19 reservation or other Indian area may deter

20 crime.’’.

21 (f) OVERSIGHT.—

22 (1) REPAYMENT.—Section 209 of the Native

23 American Housing Assistance and Self-Determination

24 Act of 1996 (25 U.S.C. 4139) is amended to read as

25 follows:
58

•S 1452 EAH

1 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

2 REQUIREMENT.

3 ‘‘If a recipient uses grant amounts to provide afford4 able housing under this title, and at any time during the

5 useful life of the housing the recipient does not comply with

6 the requirement under section 205(a)(2), the Secretary shall

7 take appropriate action under section 401(a).’’.

8 (2) AUDITS AND REVIEWS.—Section 405 of the

9 Native American Housing Assistance and Self-Deter10 mination Act of 1996 (25 U.S.C. 4165) is amended

11 to read as follows:

12 ‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.

13 ‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE

14 31, UNITED STATES CODE.—An entity designated by an

15 Indian tribe as a housing entity shall be treated, for pur16 poses of chapter 75 of title 31, United States Code, as a

17 non-Federal entity that is subject to the audit requirements

18 that apply to non-Federal entities under that chapter.

19 ‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

20 ‘‘(1) IN GENERAL.—In addition to any audit or

21 review under subsection (a), to the extent the Sec22 retary determines such action to be appropriate, the

23 Secretary may conduct an audit or review of a re24 cipient in order to—

25 ‘‘(A) determine whether the recipient—

26 ‘‘(i) has carried out—
59

•S 1452 EAH

1 ‘‘(I) eligible activities in a timely

2 manner; and

3 ‘‘(II) eligible activities and certifi4 cation in accordance with this Act and

5 other applicable law;

6 ‘‘(ii) has a continuing capacity to

7 carry out eligible activities in a timely

8 manner; and

9 ‘‘(iii) is in compliance with the Indian

10 housing plan of the recipient; and

11 ‘‘(B) verify the accuracy of information

12 contained in any performance report submitted

13 by the recipient under section 404.

14 ‘‘(2) ON-SITE VISITS.—To the extent practicable,

15 the reviews and audits conducted under this sub16 section shall include on-site visits by the appropriate

17 official of the Department of Housing and Urban De18 velopment.

19 ‘‘(c) REVIEW OF REPORTS.—

20 ‘‘(1) IN GENERAL.—The Secretary shall provide

21 each recipient that is the subject of a report made by

22 the Secretary under this section notice that the recipi23 ent may review and comment on the report during a

24 period of not less than 30 days after the date on

25 which notice is issued under this paragraph.
60

•S 1452 EAH

1 ‘‘(2) PUBLIC AVAILABILITY.—After taking into

2 consideration any comments of the recipient under

3 paragraph (1), the Secretary—

4 ‘‘(A) may revise the report; and

5 ‘‘(B) not later than 30 days after the date

6 on which those comments are received, shall

7 make the comments and the report (with any re8 visions made under subparagraph (A)) readily

9 available to the public.

10 ‘‘(d) EFFECT OF REVIEWS.—Subject to section 401(a),

11 after reviewing the reports and audits relating to a recipi12 ent that are submitted to the Secretary under this section,

13 the Secretary may adjust the amount of a grant made to

14 a recipient under this Act in accordance with the findings

15 of the Secretary with respect to those reports and audits.’’.

16 (g) ALLOCATION FORMULA.—Section 302(d)(1) of the

17 Native American Housing Assistance and Self-Determina18 tion Act of 1996 (25 U.S.C. 4152(d)(1)) is amended—

19 (1) by striking ‘‘The formula,’’ and inserting the

20 following:

21 ‘‘(A) IN GENERAL.—Except with respect to

22 an Indian tribe described in subparagraph (B),

23 the formula’’; and

24 (2) by adding at the end the following:
61

•S 1452 EAH

1 ‘‘(B) CERTAIN INDIAN TRIBES.—With re2 spect to fiscal year 2001 and each fiscal year

3 thereafter, for any Indian tribe with an Indian

4 housing authority that owns or operates fewer

5 than 250 public housing units, the formula shall

6 provide that if the amount provided for a fiscal

7 year in which the total amount made available

8 for assistance under this Act is equal to or great9 er than the amount made available for fiscal

10 year 1996 for assistance for the operation and

11 modernization of the public housing referred to

12 in subparagraph (A), then the amount provided

13 to that Indian tribe as modernization assistance

14 shall be equal to the average annual amount of

15 funds provided to the Indian tribe (other than

16 funds provided as emergency assistance) under

17 the assistance program under section 14 of the

18 United States Housing Act of 1937 (42 U.S.C.

19 1437l) for the period beginning with fiscal year

20 1992 and ending with fiscal year 1997.’’.

21 (h) HEARING REQUIREMENT.—Section 401(a) of the

22 Native American Housing Assistance and Self-Determina23 tion Act of 1996 (25 U.S.C. 4161(a)) is amended—

24 (1) by redesignating paragraphs (1) through (4)

25 as subparagraphs (A) through (D), respectively, and
62

•S 1452 EAH

1 realigning such subparagraphs (as so redesignated) so

2 as to be indented 4 ems from the left margin;

3 (2) by striking ‘‘Except as provided’’ and insert4 ing the following:

5 ‘‘(1) IN GENERAL.—Except as provided’’;

6 (3) by striking ‘‘If the Secretary takes an action

7 under paragraph (1), (2), or (3)’’ and inserting the

8 following:

9 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec10 retary takes an action under subparagraph (A), (B),

11 or (C) of paragraph (1)’’; and

12 (4) by adding at the end the following:

13 ‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—

14 ‘‘(A) IN GENERAL.—Notwithstanding any

15 other provision of this subsection, if the Sec16 retary makes a determination that the failure of

17 a recipient of assistance under this Act to com18 ply substantially with any material provision

19 (as that term is defined by the Secretary) of this

20 Act is resulting, and would continue to result, in

21 a continuing expenditure of Federal funds in a

22 manner that is not authorized by law, the Sec23 retary may take an action described in para24 graph (1)(C) before conducting a hearing.
63

•S 1452 EAH

1 ‘‘(B) PROCEDURAL REQUIREMENT.—If the

2 Secretary takes an action described in subpara3 graph (A), the Secretary shall—

4 ‘‘(i) provide notice to the recipient at

5 the time that the Secretary takes that ac6 tion; and

7 ‘‘(ii) conduct a hearing not later than

8 60 days after the date on which the Sec9 retary provides notice under clause (i).

10 ‘‘(C) DETERMINATION.—Upon completion of

11 a hearing under this paragraph, the Secretary

12 shall make a determination regarding whether to

13 continue taking the action that is the subject of

14 the hearing, or take another action under this

15 subsection.’’.

16 (i) PERFORMANCE AGREEMENT TIME LIMIT.—Section

17 401(b) of the Native American Housing Assistance and Self18 Determination Act of 1996 (25 U.S.C. 4161(b)) is

19 amended—

20 (1) by striking ‘‘If the Secretary’’ and inserting

21 the following:

22 ‘‘(1) IN GENERAL.—If the Secretary’’;

23 (2) by striking ‘‘(1) is not’’ and inserting the fol24 lowing:

25 ‘‘(A) is not’’;
64

•S 1452 EAH

1 (3) by striking ‘‘(2) is a result’’ and inserting

2 the following:

3 ‘‘(B) is a result’’;

4 (4) in the flush material following paragraph

5 (1)(B), as redesignated by paragraph (3) of this

6 subsection—

7 (A) by realigning such material so as to be

8 indented 2 ems from the left margin; and

9 (B) by inserting before the period at the end

10 the following: ‘‘, if the recipient enters into a

11 performance agreement with the Secretary that

12 specifies the compliance objectives that the recipi13 ent will be required to achieve by the termi14 nation date of the performance agreement’’; and

15 (5) by adding at the end the following:

16 ‘‘(2) PERFORMANCE AGREEMENT.—The period of

17 a performance agreement described in paragraph (1)

18 shall be for 1 year.

19 ‘‘(3) REVIEW.—Upon the termination of a per20 formance agreement entered into under paragraph

21 (1), the Secretary shall review the performance of the

22 recipient that is a party to the agreement.

23 ‘‘(4) EFFECT OF REVIEW.—If, on the basis of a

24 review under paragraph (3), the Secretary determines

25 that the recipient—
65

•S 1452 EAH

1 ‘‘(A) has made a good faith effort to meet

2 the compliance objectives specified in the agree3 ment, the Secretary may enter into an addi4 tional performance agreement for the period

5 specified in paragraph (2); and

6 ‘‘(B) has failed to make a good faith effort

7 to meet applicable compliance objectives, the Sec8 retary shall determine the recipient to have

9 failed to comply substantially with this Act, and

10 the recipient shall be subject to an action under

11 subsection (a).’’.

12 (j) LABOR STANDARDS.—Section 104(b) of the Native

13 American Housing Assistance and Self-Determination Act

14 of 1996 (25 U.S.C. 4114(b) is amended—

15 (1) in paragraph (1), by striking ‘‘Davis-Bacon

16 Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act of

17 March 3, 1931 (commonly known as the Davis-Bacon

18 Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et

19 seq.)’’; and

20 (2) by adding at the end the following new para21 graph:

22 ‘‘(3) APPLICATION OF TRIBAL LAWS.—Paragraph

23 (1) shall not apply to any contract or agreement for

24 assistance, sale, or lease pursuant to this Act, if such

25 contract or agreement is otherwise covered by one or
66

•S 1452 EAH

1 more laws or regulations adopted by an Indian tribe

2 that requires the payment of not less than prevailing

3 wages, as determined by the Indian tribe.’’.

4 (k) TECHNICAL AND CONFORMING AMENDMENTS.—

5 (1) TABLE OF CONTENTS.—Section 1(b) of the

6 Native American Housing Assistance and Self-Deter7 mination Act of 1996 (25 U.S.C. 4101 note) is

8 amended in the table of contents—

9 (A) by striking the item relating to section

10 206; and

11 (B) by striking the item relating to section

12 209 and inserting the following:

‘‘209. Noncompliance with affordable housing requirement.’’.

13 (2) CERTIFICATION OF COMPLIANCE WITH SUB14 SIDY LAYERING REQUIREMENTS.—Section 206 of the

15 Native American Housing Assistance and Self-Deter16 mination Act of 1996 (25 U.S.C. 4136) is repealed.

17 (3) TERMINATIONS.—Section 502(a) of the Na18 tive American Housing Assistance and Self-Deter19 mination Act of 1996 (25 U.S.C. 4181(a)) is amended

20 by adding at the end the following: ‘‘Any housing that

21 is the subject of a contract for tenant-based assistance

22 between the Secretary and an Indian housing author23 ity that is terminated under this section shall, for the

24 following fiscal year and each fiscal year thereafter,
67

•S 1452 EAH

1 be considered to be a dwelling unit under section

2 302(b)(1).’’.

3 Subtitle B—Native Hawaiian

4 Housing

5 SEC. 511. SHORT TITLE.

6 This subtitle may be cited as the ‘‘Hawaiian Home7 lands Homeownership Act of 2000’’.

8 SEC. 512. FINDINGS.

9 The Congress finds that—

10 (1) the United States has undertaken a responsi11 bility to promote the general welfare of the United

12 States by—

13 (A) employing its resources to remedy the

14 unsafe and unsanitary housing conditions and

15 the acute shortage of decent, safe, and sanitary

16 dwellings for families of lower income; and

17 (B) developing effective partnerships with

18 governmental and private entities to accomplish

19 the objectives referred to in subparagraph (A);

20 (2) the United States has a special responsibility

21 for the welfare of the Native peoples of the United

22 States, including Native Hawaiians;

23 (3) pursuant to the provisions of the Hawaiian

24 Homes Commission Act, 1920 (42 Stat. 108 et seq.),

25 the United States set aside 200,000 acres of land in
68

•S 1452 EAH

1 the Federal territory that later became the State of

2 Hawaii in order to establish a homeland for the na3 tive people of Hawaii—Native Hawaiians;

4 (4) despite the intent of Congress in 1920 to ad5 dress the housing needs of Native Hawaiians through

6 the enactment of the Hawaiian Homes Commission

7 Act, 1920 (42 Stat. 108 et seq.), Native Hawaiians el8 igible to reside on the Hawaiian home lands have

9 been foreclosed from participating in Federal housing

10 assistance programs available to all other eligible

11 families in the United States;

12 (5) although Federal housing assistance pro13 grams have been administered on a racially neutral

14 basis in the State of Hawaii, Native Hawaiians con15 tinue to have the greatest unmet need for housing and

16 the highest rates of overcrowding in the United States;

17 (6) among the Native American population of

18 the United States, Native Hawaiians experience the

19 highest percentage of housing problems in the United

20 States, as the percentage—

21 (A) of housing problems in the Native Ha22 waiian population is 49 percent, as compared

23 to—
69

•S 1452 EAH

1 (i) 44 percent for American Indian

2 and Alaska Native households in Indian

3 country; and

4 (ii) 27 percent for all other households

5 in the United States; and

6 (B) overcrowding in the Native Hawaiian

7 population is 36 percent as compared to 3 per8 cent for all other households in the United

9 States;

10 (7) among the Native Hawaiian population, the

11 needs of Native Hawaiians, as that term is defined in

12 section 801 of the Native American Housing Assist13 ance and Self-Determination Act of 1996 (as added

14 by this subtitle), eligible to reside on the Hawaiian

15 Home Lands are the most severe, as—

16 (A) the percentage of overcrowding in Na17 tive Hawaiian households on the Hawaiian

18 Home Lands is 36 percent; and

19 (B) approximately 13,000 Native Hawai20 ians, which constitute 95 percent of the Native

21 Hawaiians who are eligible to reside on the Ha22 waiian Home Lands, are in need of housing;

23 (8) applying the Department of Housing and

24 Urban Development guidelines—
70

•S 1452 EAH

1 (A) 70.8 percent of Native Hawaiians who

2 either reside or who are eligible to reside on the

3 Hawaiian Home Lands have incomes that fall

4 below the median family income; and

5 (B) 50 percent of Native Hawaiians who ei6 ther reside or who are eligible to reside on the

7 Hawaiian Home Lands have incomes below 30

8 percent of the median family income;

(9) 1 9 ⁄3 of those Native Hawaiians who are eligi10 ble to reside on the Hawaiian Home Lands pay more

than 30 percent of their income for shelter, and 1 11 ⁄2 of

12 those Native Hawaiians face overcrowding;

13 (10) the extraordinarily severe housing needs of

14 Native Hawaiians demonstrate that Native Hawai15 ians who either reside on, or are eligible to reside on,

16 Hawaiian Home Lands have been denied equal access

17 to Federal low-income housing assistance programs

18 available to other qualified residents of the United

19 States, and that a more effective means of addressing

20 their housing needs must be authorized;

21 (11) consistent with the recommendations of the

22 National Commission on American Indian, Alaska

23 Native, and Native Hawaiian Housing, and in order

24 to address the continuing prevalence of extraor25 dinarily severe housing needs among Native Hawai-
71

•S 1452 EAH

1 ians who either reside or are eligible to reside on the

2 Hawaiian Home Lands, Congress finds it necessary

3 to extend the Federal low-income housing assistance

4 available to American Indians and Alaska Natives

5 under the Native American Housing Assistance and

6 Self-Determination Act of 1996 (25 U.S.C. 4101 et

7 seq.) to those Native Hawaiians;

8 (12) under the treatymaking power of the United

9 States, Congress had the constitutional authority to

10 confirm a treaty between the United States and the

11 government that represented the Hawaiian people,

12 and from 1826 until 1893, the United States recog13 nized the independence of the Kingdom of Hawaii, ex14 tended full diplomatic recognition to the Hawaiian

15 Government, and entered into treaties and conven16 tions with the Hawaiian monarchs to govern com17 merce and navigation in 1826, 1842, 1849, 1875, and

18 1887;

19 (13) the United States has recognized and re20 affirmed that—

21 (A) Native Hawaiians have a cultural, his22 toric, and land-based link to the indigenous peo23 ple who exercised sovereignty over the Hawaiian

24 Islands, and that group has never relinquished

25 its claims to sovereignty or its sovereign lands;
72

•S 1452 EAH

1 (B) Congress does not extend services to Na2 tive Hawaiians because of their race, but because

3 of their unique status as the indigenous people of

4 a once sovereign nation as to whom the United

5 States has established a trust relationship;

6 (C) Congress has also delegated broad au7 thority to administer a portion of the Federal

8 trust responsibility to the State of Hawaii;

9 (D) the political status of Native Hawai10 ians is comparable to that of American Indians

11 and Alaska Natives; and

12 (E) the aboriginal, indigenous people of the

13 United States have—

14 (i) a continuing right to autonomy in

15 their internal affairs; and

16 (ii) an ongoing right of self-determina17 tion and self-governance that has never been

18 extinguished;

19 (14) the political relationship between the United

20 States and the Native Hawaiian people has been rec21 ognized and reaffirmed by the United States as evi22 denced by the inclusion of Native Hawaiians in—

23 (A) the Native American Programs Act of

24 1974 (42 U.S.C. 2291 et seq.);
73

•S 1452 EAH

1 (B) the American Indian Religious Free2 dom Act (42 U.S.C. 1996 et seq.);

3 (C) the National Museum of the American

4 Indian Act (20 U.S.C. 80q et seq.);

5 (D) the Native American Graves Protection

6 and Repatriation Act (25 U.S.C. 3001 et seq.);

7 (E) the National Historic Preservation Act

8 (16 U.S.C. 470 et seq.);

9 (F) the Native American Languages Act of

10 1992 (106 Stat. 3434);

11 (G) the American Indian, Alaska Native

12 and Native Hawaiian Culture and Arts Develop13 ment Act (20 U.S.C. 4401 et seq.);

14 (H) the Job Training Partnership Act (29

15 U.S.C. 1501 et seq.); and

16 (I) the Older Americans Act of 1965 (42

17 U.S.C. 3001 et seq.); and

18 (15) in the area of housing, the United States

19 has recognized and reaffirmed the political relation20 ship with the Native Hawaiian people through—

21 (A) the enactment of the Hawaiian Homes

22 Commission Act, 1920 (42 Stat. 108 et seq.),

23 which set aside approximately 200,000 acres of

24 public lands that became known as Hawaiian

25 Home Lands in the Territory of Hawaii that
74

•S 1452 EAH

1 had been ceded to the United States for home2 steading by Native Hawaiians in order to reha3 bilitate a landless and dying people;

4 (B) the enactment of the Act entitled ‘‘An

5 Act to provide for the admission of the State of

6 Hawaii into the Union’’, approved March 18,

7 1959 (73 Stat. 4)—

8 (i) by ceding to the State of Hawaii

9 title to the public lands formerly held by the

10 United States, and mandating that those

11 lands be held in public trust, for the better12 ment of the conditions of Native Hawaiians,

13 as that term is defined in section 201 of the

14 Hawaiian Homes Commission Act, 1920

15 (42 Stat. 108 et seq.); and

16 (ii) by transferring the United States

17 responsibility for the administration of Ha18 waiian Home Lands to the State of Ha19 waii, but retaining the authority to enforce

20 the trust, including the exclusive right of the

21 United States to consent to any actions af22 fecting the lands which comprise the corpus

23 of the trust and any amendments to the Ha24 waiian Homes Commission Act, 1920 (42

25 Stat. 108 et seq.), enacted by the legislature
75

•S 1452 EAH

1 of the State of Hawaii affecting the rights

2 of beneficiaries under the Act;

3 (C) the authorization of mortgage loans in4 sured by the Federal Housing Administration for

5 the purchase, construction, or refinancing of

6 homes on Hawaiian Home Lands under the Na7 tional Housing Act (Public Law 479; 73d Con8 gress; 12 U.S.C. 1701 et seq.);

9 (D) authorizing Native Hawaiian represen10 tation on the National Commission on American

11 Indian, Alaska Native, and Native Hawaiian

12 Housing under Public Law 101–235;

13 (E) the inclusion of Native Hawaiians in

14 the definition under section 3764 of title 38,

15 United States Code, applicable to subchapter V

16 of chapter 37 of title 38, United States Code (re17 lating to a housing loan program for Native

18 American veterans); and

19 (F) the enactment of the Hawaiian Home

20 Lands Recovery Act (109 Stat. 357; 48 U.S.C.

21 491, note prec.) which establishes a process for

22 the conveyance of Federal lands to the Depart23 ment of Hawaiian Homes Lands that are equiv24 alent in value to lands acquired by the United
76

•S 1452 EAH

1 States from the Hawaiian Home Lands inven2 tory.

3 SEC. 513. HOUSING ASSISTANCE.

4 The Native American Housing Assistance and Self-De5 termination Act of 1996 (25 U.S.C. 4101 et seq.) is amend6 ed by adding at the end the following:

7 ‘‘TITLE VIII—HOUSING ASSIST8 ANCE FOR NATIVE HAWAI9 IANS

10 ‘‘SEC. 801. DEFINITIONS.

11 ‘‘In this title:

12 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

13 DEPARTMENT.—The term ‘Department of Hawaiian

14 Home Lands’ or ‘Department’ means the agency or

15 department of the government of the State of Hawaii

16 that is responsible for the administration of the Ha17 waiian Homes Commission Act, 1920 (42 Stat. 108

18 et seq.).

19 ‘‘(2) DIRECTOR.—The term ‘Director’ means the

20 Director of the Department of Hawaiian Home

21 Lands.

22 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI23 LIES.—

24 ‘‘(A) IN GENERAL.—The term ‘elderly fam25 ily’ or ‘near-elderly family’ means a family
77

•S 1452 EAH

1 whose head (or his or her spouse), or whose sole

2 member, is—

3 ‘‘(i) for an elderly family, an elderly

4 person; or

5 ‘‘(ii) for a near-elderly family, a near6 elderly person.

7 ‘‘(B) CERTAIN FAMILIES INCLUDED.—The

8 term ‘elderly family’ or ‘near-elderly family’

9 includes—

10 ‘‘(i) two or more elderly persons or

11 near-elderly persons, as the case may be,

12 living together; and

13 ‘‘(ii) one or more persons described in

14 clause (i) living with one or more persons

15 determined under the housing plan to be es16 sential to their care or well-being.

17 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha18 waiian Home Lands’ means lands that—

19 ‘‘(A) have the status as Hawaiian home

20 lands under section 204 of the Hawaiian Homes

21 Commission Act, 1920(42 Stat. 110); or

22 ‘‘(B) are acquired pursuant to that Act.

23 ‘‘(5) HOUSING AREA.—The term ‘housing area’

24 means an area of Hawaiian Home Lands with re25 spect to which the Department of Hawaiian Home
78

•S 1452 EAH

1 Lands is authorized to provide assistance for afford2 able housing under this Act.

3 ‘‘(6) HOUSING ENTITY.—The term ‘housing enti4 ty’ means the Department of Hawaiian Home Lands.

5 ‘‘(7) HOUSING PLAN.—The term ‘housing plan’

6 means a plan developed by the Department of Hawai7 ian Home Lands.

8 ‘‘(8) MEDIAN INCOME.—The term ‘median in9 come’ means, with respect to an area that is a Ha10 waiian housing area, the greater of—

11 ‘‘(A) the median income for the Hawaiian

12 housing area, which shall be determined by the

13 Secretary; or

14 ‘‘(B) the median income for the State of

15 Hawaii.

16 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Ha17 waiian’ means any individual who is—

18 ‘‘(A) a citizen of the United States; and

19 ‘‘(B) a descendant of the aboriginal people,

20 who, prior to 1778, occupied and exercised sov21 ereignty in the area that currently constitutes

22 the State of Hawaii, as evidenced by—

23 ‘‘(i) genealogical records;
79

•S 1452 EAH

1 ‘‘(ii) verification by kupuna (elders) or

2 kama’aina (long-term community resi3 dents); or

4 ‘‘(iii) birth records of the State of Ha5 waii.

6 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING

7 ACTIVITIES.

8 ‘‘(a) GRANT AUTHORITY.—For each fiscal year, the

9 Secretary shall (to the extent amounts are made available

10 to carry out this title) make a grant under this title to the

11 Department of Hawaiian Home Lands to carry out afford12 able housing activities for Native Hawaiian families who

13 are eligible to reside on the Hawaiian Home Lands.

14 ‘‘(b) PLAN REQUIREMENT.—

15 ‘‘(1) IN GENERAL.—The Secretary may make a

16 grant under this title to the Department of Hawaiian

17 Home Lands for a fiscal year only if—

18 ‘‘(A) the Director has submitted to the Sec19 retary a housing plan for that fiscal year; and

20 ‘‘(B) the Secretary has determined under

21 section 804 that the housing plan complies with

22 the requirements of section 803.

23 ‘‘(2) WAIVER.—The Secretary may waive the ap24 plicability of the requirements under paragraph (1),

25 in part, if the Secretary finds that the Department of
80

•S 1452 EAH

1 Hawaiian Home Lands has not complied or cannot

2 comply with those requirements due to circumstances

3 beyond the control of the Department of Hawaiian

4 Home Lands.

5 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

6 UNDER PLAN.—Except as provided in subsection (e),

7 amounts provided under a grant under this section may

8 be used only for affordable housing activities under this title

9 that are consistent with a housing plan approved under sec10 tion 804.

11 ‘‘(d) ADMINISTRATIVE EXPENSES.—

12 ‘‘(1) IN GENERAL.—The Secretary shall, by regu13 lation, authorize the Department of Hawaiian Home

14 Lands to use a percentage of any grant amounts re15 ceived under this title for any reasonable administra16 tive and planning expenses of the Department relat17 ing to carrying out this title and activities assisted

18 with those amounts.

19 ‘‘(2) ADMINISTRATIVE AND PLANNING EX20 PENSES.—The administrative and planning expenses

21 referred to in paragraph (1) include—

22 ‘‘(A) costs for salaries of individuals en23 gaged in administering and managing affordable

24 housing activities assisted with grant amounts

25 provided under this title; and
81

•S 1452 EAH

1 ‘‘(B) expenses incurred in preparing a

2 housing plan under section 803.

3 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Director

4 shall make all reasonable efforts, consistent with the pur5 poses of this title, to maximize participation by the private

6 sector, including nonprofit organizations and for-profit en7 tities, in implementing a housing plan that has been ap8 proved by the Secretary under section 803.

9 ‘‘SEC. 803. HOUSING PLAN.

10 ‘‘(a) PLAN SUBMISSION.—The Secretary shall—

11 ‘‘(1) require the Director to submit a housing

12 plan under this section for each fiscal year; and

13 ‘‘(2) provide for the review of each plan sub14 mitted under paragraph (1).

15 ‘‘(b) FIVE-YEAR PLAN.—Each housing plan under this

16 section shall—

17 ‘‘(1) be in a form prescribed by the Secretary;

18 and

19 ‘‘(2) contain, with respect to the 5-year period

20 beginning with the fiscal year for which the plan is

21 submitted, the following information:

22 ‘‘(A) MISSION STATEMENT.—A general

23 statement of the mission of the Department of

24 Hawaiian Home Lands to serve the needs of the
82

•S 1452 EAH

1 low-income families to be served by the Depart2 ment.

3 ‘‘(B) GOAL AND OBJECTIVES.—A statement

4 of the goals and objectives of the Department of

5 Hawaiian Home Lands to enable the Depart6 ment to serve the needs identified in subpara7 graph (A) during the period.

8 ‘‘(C) ACTIVITIES PLANS.—An overview of

9 the activities planned during the period includ10 ing an analysis of the manner in which the ac11 tivities will enable the Department to meet its

12 mission, goals, and objectives.

13 ‘‘(c) ONE-YEAR PLAN.—A housing plan under this sec14 tion shall—

15 ‘‘(1) be in a form prescribed by the Secretary;

16 and

17 ‘‘(2) contain the following information relating

18 to the fiscal year for which the assistance under this

19 title is to be made available:

20 ‘‘(A) GOALS AND OBJECTIVES.—A statement

21 of the goals and objectives to be accomplished

22 during the period covered by the plan.

23 ‘‘(B) STATEMENT OF NEEDS.—A statement

24 of the housing needs of the low-income families

25 served by the Department and the means by
83

•S 1452 EAH

1 which those needs will be addressed during the

2 period covered by the plan, including—

3 ‘‘(i) a description of the estimated

4 housing needs and the need for assistance

5 for the low-income families to be served by

6 the Department, including a description of

7 the manner in which the geographical dis8 tribution of assistance is consistent with—

9 ‘‘(I) the geographical needs of

10 those families; and

11 ‘‘(II) needs for various categories

12 of housing assistance; and

13 ‘‘(ii) a description of the estimated

14 housing needs for all families to be served

15 by the Department.

16 ‘‘(C) FINANCIAL RESOURCES.—An oper17 ating budget for the Department of Hawaiian

18 Home Lands, in a form prescribed by the Sec19 retary, that includes—

20 ‘‘(i) an identification and a descrip21 tion of the financial resources reasonably

22 available to the Department to carry out the

23 purposes of this title, including an expla24 nation of the manner in which amounts
84

•S 1452 EAH

1 made available will be used to leverage ad2 ditional resources; and

3 ‘‘(ii) the uses to which the resources de4 scribed in clause (i) will be committed,

5 including—

6 ‘‘(I) eligible and required afford7 able housing activities; and

8 ‘‘(II) administrative expenses.

9 ‘‘(D) AFFORDABLE HOUSING RESOURCES.—

10 A statement of the affordable housing resources

11 currently available at the time of the submittal

12 of the plan and to be made available during the

13 period covered by the plan, including—

14 ‘‘(i) a description of the significant

15 characteristics of the housing market in the

16 State of Hawaii, including the availability

17 of housing from other public sources, private

18 market housing;

19 ‘‘(ii) the manner in which the charac20 teristics referred to in clause (i) influence

21 the decision of the Department of Hawaiian

22 Home Lands to use grant amounts to be

23 provided under this title for—

24 ‘‘(I) rental assistance;

25 ‘‘(II) the production of new units;
85

•S 1452 EAH

1 ‘‘(III) the acquisition of existing

2 units; or

3 ‘‘(IV) the rehabilitation of units;

4 ‘‘(iii) a description of the structure, co5 ordination, and means of cooperation be6 tween the Department of Hawaiian Home

7 Lands and any other governmental entities

8 in the development, submission, or imple9 mentation of housing plans, including a de10 scription of—

11 ‘‘(I) the involvement of private,

12 public, and nonprofit organizations

13 and institutions;

14 ‘‘(II) the use of loan guarantees

15 under section 184A of the Housing and

16 Community Development Act of 1992;

17 and

18 ‘‘(III) other housing assistance

19 provided by the United States, includ20 ing loans, grants, and mortgage insur21 ance;

22 ‘‘(iv) a description of the manner in

23 which the plan will address the needs iden24 tified pursuant to subparagraph (C);

25 ‘‘(v) a description of—
86

•S 1452 EAH

1 ‘‘(I) any existing or anticipated

2 homeownership programs and rental

3 programs to be carried out during the

4 period covered by the plan; and

5 ‘‘(II) the requirements and assist6 ance available under the programs re7 ferred to in subclause (I);

8 ‘‘(vi) a description of—

9 ‘‘(I) any existing or anticipated

10 housing rehabilitation programs nec11 essary to ensure the long-term viability

12 of the housing to be carried out during

13 the period covered by the plan; and

14 ‘‘(II) the requirements and assist15 ance available under the programs re16 ferred to in subclause (I);

17 ‘‘(vii) a description of—

18 ‘‘(I) all other existing or antici19 pated housing assistance provided by

20 the Department of Hawaiian Home

21 Lands during the period covered by the

22 plan, including—

23 ‘‘(aa) transitional housing;

24 ‘‘(bb) homeless housing;

25 ‘‘(cc) college housing; and
87

•S 1452 EAH

1 ‘‘(dd) supportive services

2 housing; and

3 ‘‘(II) the requirements and assist4 ance available under such programs;

5 ‘‘(viii)(I) a description of any housing

6 to be demolished or disposed of;

7 ‘‘(II) a timetable for that demolition or

8 disposition; and

9 ‘‘(III) any other information required

10 by the Secretary with respect to that demo11 lition or disposition;

12 ‘‘(ix) a description of the manner in

13 which the Department of Hawaiian Home

14 Lands will coordinate with welfare agencies

15 in the State of Hawaii to ensure that resi16 dents of the affordable housing will be pro17 vided with access to resources to assist in

18 obtaining employment and achieving self19 sufficiency;

20 ‘‘(x) a description of the requirements

21 established by the Department of Hawaiian

22 Home Lands to—

23 ‘‘(I) promote the safety of resi24 dents of the affordable housing;
88

•S 1452 EAH

1 ‘‘(II) facilitate the undertaking of

2 crime prevention measures;

3 ‘‘(III) allow resident input and

4 involvement, including the establish5 ment of resident organizations; and

6 ‘‘(IV) allow for the coordination of

7 crime prevention activities between the

8 Department and local law enforcement

9 officials; and

10 ‘‘(xi) a description of the entities that

11 will carry out the activities under the plan,

12 including the organizational capacity and

13 key personnel of the entities.

14 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

15 Evidence of compliance that shall include, as

16 appropriate—

17 ‘‘(i) a certification that the Depart18 ment of Hawaiian Home Lands will com19 ply with—

20 ‘‘(I) title VI of the Civil Rights

21 Act of 1964 (42 U.S.C. 2000d et seq.)

22 or with the Fair Housing Act (42

23 U.S.C. 3601 et seq.) in carrying out

24 this title, to the extent that such title is

25 applicable; and
89

•S 1452 EAH

1 ‘‘(II) other applicable Federal

2 statutes;

3 ‘‘(ii) a certification that the Depart4 ment will require adequate insurance cov5 erage for housing units that are owned and

6 operated or assisted with grant amounts

7 provided under this title, in compliance

8 with such requirements as may be estab9 lished by the Secretary;

10 ‘‘(iii) a certification that policies are

11 in effect and are available for review by the

12 Secretary and the public governing the eli13 gibility, admission, and occupancy of fami14 lies for housing assisted with grant amounts

15 provided under this title;

16 ‘‘(iv) a certification that policies are in

17 effect and are available for review by the

18 Secretary and the public governing rents

19 charged, including the methods by which

20 such rents or homebuyer payments are de21 termined, for housing assisted with grant

22 amounts provided under this title; and

23 ‘‘(v) a certification that policies are in

24 effect and are available for review by the

25 Secretary and the public governing the
90

•S 1452 EAH

1 management and maintenance of housing

2 assisted with grant amounts provided under

3 this title.

4 ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

5 ‘‘(1) IN GENERAL.—To the extent that the re6 quirements of title VI of the Civil Rights Act of 1964

7 (42 U.S.C. 2000d et seq.) or of the Fair Housing Act

8 (42 U.S.C. 3601 et seq.) apply to assistance provided

9 under this title, nothing in the requirements con10 cerning discrimination on the basis of race shall be

11 construed to prevent the provision of assistance under

12 this title—

13 ‘‘(A) to the Department of Hawaiian Home

14 Lands on the basis that the Department served

15 Native Hawaiians; or

16 ‘‘(B) to an eligible family on the basis that

17 the family is a Native Hawaiian family.

18 ‘‘(2) CIVIL RIGHTS.—Program eligibility under

19 this title may be restricted to Native Hawaiians. Sub20 ject to the preceding sentence, no person may be dis21 criminated against on the basis of race, color, na22 tional origin, religion, sex, familial status, or dis23 ability.

24 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a con25 dition of receiving grant amounts under this title, the De-
91

•S 1452 EAH

1 partment of Hawaiian Home Lands shall, to the extent

2 practicable, provide for private nonprofit organizations ex3 perienced in the planning and development of affordable

4 housing for Native Hawaiians to carry out affordable hous5 ing activities with those grant amounts.

6 ‘‘SEC. 804. REVIEW OF PLANS.

7 ‘‘(a) REVIEW AND NOTICE.—

8 ‘‘(1) REVIEW.—

9 ‘‘(A) IN GENERAL.—The Secretary shall

10 conduct a review of a housing plan submitted to

11 the Secretary under section 803 to ensure that

12 the plan complies with the requirements of that

13 section.

14 ‘‘(B) LIMITATION.—The Secretary shall

15 have the discretion to review a plan referred to

16 in subparagraph (A) only to the extent that the

17 Secretary considers that the review is necessary.

18 ‘‘(2) NOTICE.—

19 ‘‘(A) IN GENERAL.—Not later than 60 days

20 after receiving a plan under section 803, the Sec21 retary shall notify the Director of the Depart22 ment of Hawaiian Home Lands whether the

23 plan complies with the requirements under that

24 section.
92

•S 1452 EAH

1 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

2 TO TAKE ACTION.—For purposes of this title, if

3 the Secretary does not notify the Director, as re4 quired under this subsection and subsection (b),

5 upon the expiration of the 60-day period de6 scribed in subparagraph (A)—

7 ‘‘(i) the plan shall be considered to

8 have been determined to comply with the re9 quirements under section 803; and

10 ‘‘(ii) the Director shall be considered to

11 have been notified of compliance.

12 ‘‘(b) NOTICE OF REASONS FOR DETERMINATION OF

13 NONCOMPLIANCE.—If the Secretary determines that a plan

14 submitted under section 803 does not comply with the re15 quirements of that section, the Secretary shall specify in

16 the notice under subsection (a)—

17 ‘‘(1) the reasons for noncompliance; and

18 ‘‘(2) any modifications necessary for the plan to

19 meet the requirements of section 803.

20 ‘‘(c) REVIEW.—

21 ‘‘(1) IN GENERAL.—After the Director of the De22 partment of Hawaiian Home Lands submits a hous23 ing plan under section 803, or any amendment or

24 modification to the plan to the Secretary, to the ex25 tent that the Secretary considers such action to be
93

•S 1452 EAH

1 necessary to make a determination under this sub2 section, the Secretary shall review the plan (including

3 any amendments or modifications thereto) to deter4 mine whether the contents of the plan—

5 ‘‘(A) set forth the information required by

6 section 803 to be contained in the housing plan;

7 ‘‘(B) are consistent with information and

8 data available to the Secretary; and

9 ‘‘(C) are not prohibited by or inconsistent

10 with any provision of this Act or any other ap11 plicable law.

12 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de13 termines under this subsection that any of the appro14 priate certifications required under section

15 803(c)(2)(E) are not included in a plan, the plan

16 shall be considered to be incomplete.

17 ‘‘(d) UPDATES TO PLAN.—

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

19 after a plan under section 803 has been submitted for

20 a fiscal year, the Director of the Department of Ha21 waiian Home Lands may comply with the provisions

22 of that section for any succeeding fiscal year (with re23 spect to information included for the 5-year period

24 under section 803(b) or for the 1-year period under

25 section 803(c)) by submitting only such information
94

•S 1452 EAH

1 regarding such changes as may be necessary to update

2 the plan previously submitted.

3 ‘‘(2) COMPLETE PLANS.—The Director shall sub4 mit a complete plan under section 803 not later than

5 4 years after submitting an initial plan under that

6 section, and not less frequently than every 4 years

7 thereafter.

8 ‘‘(e) EFFECTIVE DATE.—This section and section 803

9 shall take effect on the date provided by the Secretary pur10 suant to section 807(a) to provide for timely submission

11 and review of the housing plan as necessary for the provi12 sion of assistance under this title for fiscal year 2001.

13 ‘‘SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR

14 STANDARDS.

15 ‘‘(a) PROGRAM INCOME.—

16 ‘‘(1) AUTHORITY TO RETAIN.—The Department

17 of Hawaiian Home Lands may retain any program

18 income that is realized from any grant amounts re19 ceived by the Department under this title if—

20 ‘‘(A) that income was realized after the ini21 tial disbursement of the grant amounts received

22 by the Department; and

23 ‘‘(B) the Director agrees to use the program

24 income for affordable housing activities in ac25 cordance with the provisions of this title.
95

•S 1452 EAH

1 ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.—

2 The Secretary may not reduce the grant amount for

3 the Department of Hawaiian Home Lands based sole4 ly on—

5 ‘‘(A) whether the Department retains pro6 gram income under paragraph (1); or

7 ‘‘(B) the amount of any such program in8 come retained.

9 ‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary

10 may, by regulation, exclude from consideration as

11 program income any amounts determined to be so

12 small that compliance with the requirements of this

13 subsection would create an unreasonable administra14 tive burden on the Department.

15 ‘‘(b) LABOR STANDARDS.—

16 ‘‘(1) IN GENERAL.—Any contract or agreement

17 for assistance, sale, or lease pursuant to this title

18 shall contain—

19 ‘‘(A) a provision requiring that an amount

20 not less than the wages prevailing in the locality,

21 as determined or adopted (subsequent to a deter22 mination under applicable State or local law) by

23 the Secretary, shall be paid to all architects,

24 technical engineers, draftsmen, technicians em25 ployed in the development and all maintenance,
96

•S 1452 EAH

1 and laborers and mechanics employed in the op2 eration, of the affordable housing project in3 volved; and

4 ‘‘(B) a provision that an amount not less

5 than the wages prevailing in the locality, as pre6 determined by the Secretary of Labor pursuant

7 to the Act commonly known as the ‘Davis-Bacon

8 Act’ (46 Stat. 1494; chapter 411; 40 U.S.C. 276a

9 et seq.) shall be paid to all laborers and mechan10 ics employed in the development of the affordable

11 housing involved.

12 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi13 sions relating to wages required under paragraph (1)

14 in any contract or agreement for assistance, sale, or

15 lease under this title, shall not apply to any indi16 vidual who performs the services for which the indi17 vidual volunteered and who is not otherwise employed

18 at any time in the construction work and received no

19 compensation or is paid expenses, reasonable benefits,

20 or a nominal fee for those services.

21 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

22 ‘‘(a) IN GENERAL.—

23 ‘‘(1) RELEASE OF FUNDS.—

24 ‘‘(A) IN GENERAL.—The Secretary may

25 carry out the alternative environmental protec-
97

•S 1452 EAH

1 tion procedures described in subparagraph (B)

2 in order to ensure—

3 ‘‘(i) that the policies of the National

4 Environmental Policy Act of 1969 (42

5 U.S.C. 4321 et seq.) and other provisions of

6 law that further the purposes of such Act

7 (as specified in regulations issued by the

8 Secretary) are most effectively implemented

9 in connection with the expenditure of grant

10 amounts provided under this title; and

11 ‘‘(ii) to the public undiminished pro12 tection of the environment.

13 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO14 TECTION PROCEDURE.—In lieu of applying envi15 ronmental protection procedures otherwise appli16 cable, the Secretary may by regulation provide

17 for the release of funds for specific projects to the

18 Department of Hawaiian Home Lands if the Di19 rector of the Department assumes all of the re20 sponsibilities for environmental review, decision21 making, and action under the National Environ22 mental Policy Act of 1969 (42 U.S.C. 4321 et

23 seq.), and such other provisions of law as the reg24 ulations of the Secretary specify, that would
98

•S 1452 EAH

1 apply to the Secretary were the Secretary to un2 dertake those projects as Federal projects.

3 ‘‘(2) REGULATIONS.—

4 ‘‘(A) IN GENERAL.—The Secretary shall

5 issue regulations to carry out this section only

6 after consultation with the Council on Environ7 mental Quality.

8 ‘‘(B) CONTENTS.—The regulations issued

9 under this paragraph shall—

10 ‘‘(i) provide for the monitoring of the

11 environmental reviews performed under this

12 section;

13 ‘‘(ii) in the discretion of the Secretary,

14 facilitate training for the performance of

15 such reviews; and

16 ‘‘(iii) provide for the suspension or ter17 mination of the assumption of responsibil18 ities under this section.

19 ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—

20 The duty of the Secretary under paragraph (2)(B)

21 shall not be construed to limit or reduce any responsi22 bility assumed by the Department of Hawaiian Home

23 Lands for grant amounts with respect to any specific

24 release of funds.

25 ‘‘(b) PROCEDURE.—
99

•S 1452 EAH

1 ‘‘(1) IN GENERAL.—The Secretary shall author2 ize the release of funds subject to the procedures under

3 this section only if, not less than 15 days before that

4 approval and before any commitment of funds to such

5 projects, the Director of the Department of Hawaiian

6 Home Lands submits to the Secretary a request for

7 such release accompanied by a certification that meets

8 the requirements of subsection (c).

9 ‘‘(2) EFFECT OF APPROVAL.—The approval of

10 the Secretary of a certification described in para11 graph (1) shall be deemed to satisfy the responsibil12 ities of the Secretary under the National Environ13 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

14 and such other provisions of law as the regulations of

15 the Secretary specify to the extent that those respon16 sibilities relate to the releases of funds for projects

17 that are covered by that certification.

18 ‘‘(c) CERTIFICATION.—A certification under the proce19 dures under this section shall—

20 ‘‘(1) be in a form acceptable to the Secretary;

21 ‘‘(2) be executed by the Director of the Depart22 ment of Hawaiian Home Lands;

23 ‘‘(3) specify that the Department of Hawaiian

24 Home Lands has fully carried out its responsibilities

25 as described under subsection (a); and
100

•S 1452 EAH

1 ‘‘(4) specify that the Director—

2 ‘‘(A) consents to assume the status of a re3 sponsible Federal official under the National En4 vironmental Policy Act of 1969 (42 U.S.C. 4321

5 et seq.) and each provision of law specified in

6 regulations issued by the Secretary to the extent

7 that those laws apply by reason of subsection (a);

8 and

9 ‘‘(B) is authorized and consents on behalf of

10 the Department of Hawaiian Home Lands and

11 the Director to accept the jurisdiction of the Fed12 eral courts for the purpose of enforcement of the

13 responsibilities of the Director of the Department

14 of Hawaiian Home Lands as such an official.

15 ‘‘SEC. 807. REGULATIONS.

16 ‘‘The Secretary shall issue final regulations necessary

17 to carry out this title not later than October 1, 2001.

18 ‘‘SEC. 808. EFFECTIVE DATE.

19 ‘‘Except as otherwise expressly provided in this title,

20 this title shall take effect on the date of the enactment of

21 the American Homeownership and Economic Opportunity

22 Act of 2000.

23 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

24 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI25 LIES.—
101

•S 1452 EAH

1 ‘‘(1) PRIMARY OBJECTIVE.—The national objec2 tives of this title are—

3 ‘‘(A) to assist and promote affordable hous4 ing activities to develop, maintain, and operate

5 affordable housing in safe and healthy environ6 ments for occupancy by low-income Native Ha7 waiian families;

8 ‘‘(B) to ensure better access to private mort9 gage markets and to promote self-sufficiency of

10 low-income Native Hawaiian families;

11 ‘‘(C) to coordinate activities to provide

12 housing for low-income Native Hawaiian fami13 lies with Federal, State and local activities to

14 further economic and community development;

15 ‘‘(D) to plan for and integrate infrastruc16 ture resources on the Hawaiian Home Lands

17 with housing development; and

18 ‘‘(E) to—

19 ‘‘(i) promote the development of private

20 capital markets; and

21 ‘‘(ii) allow the markets referred to in

22 clause (i) to operate and grow, thereby bene23 fiting Native Hawaiian communities.

24 ‘‘(2) ELIGIBLE FAMILIES.—
102

•S 1452 EAH

1 ‘‘(A) IN GENERAL.—Except as provided

2 under subparagraph (B), assistance for eligible

3 housing activities under this title shall be limited

4 to low-income Native Hawaiian families.

5 ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE6 MENT.—

7 ‘‘(i) IN GENERAL.—The Director may

8 provide assistance for homeownership ac9 tivities under—

10 ‘‘(I) section 810(b);

11 ‘‘(II) model activities under sec12 tion 810(f); or

13 ‘‘(III) loan guarantee activities

14 under section 184A of the Housing and

15 Community Development Act of 1992

16 to Native Hawaiian families who are

17 not low-income families, to the extent

18 that the Secretary approves the activi19 ties under that section to address a

20 need for housing for those families that

21 cannot be reasonably met without that

22 assistance.

23 ‘‘(ii) LIMITATIONS.—The Secretary

24 shall establish limitations on the amount of

25 assistance that may be provided under this
103

•S 1452 EAH

1 title for activities for families that are not

2 low-income families.

3 ‘‘(C) OTHER FAMILIES.—Notwithstanding

4 paragraph (1), the Director may provide housing

5 or housing assistance provided through affordable

6 housing activities assisted with grant amounts

7 under this title to a family that is not composed

8 of Native Hawaiians if—

9 ‘‘(i) the Department determines that

10 the presence of the family in the housing in11 volved is essential to the well-being of Na12 tive Hawaiian families; and

13 ‘‘(ii) the need for housing for the fam14 ily cannot be reasonably met without the

15 assistance.

16 ‘‘(D) PREFERENCE.—

17 ‘‘(i) IN GENERAL.—A housing plan

18 submitted under section 803 may authorize

19 a preference, for housing or housing assist20 ance provided through affordable housing

21 activities assisted with grant amounts pro22 vided under this title to be provided, to the

23 extent practicable, to families that are eligi24 ble to reside on the Hawaiian Home Lands.
104

•S 1452 EAH

1 ‘‘(ii) APPLICATION.—In any case in

2 which a housing plan provides for pref3 erence described in clause (i), the Director

4 shall ensure that housing activities that are

5 assisted with grant amounts under this title

6 are subject to that preference.

7 ‘‘(E) USE OF NONPROFIT ORGANIZA8 TIONS.—As a condition of receiving grant

9 amounts under this title, the Department of Ha10 waiian Home Lands, shall to the extent prac11 ticable, provide for private nonprofit organiza12 tions experienced in the planning and develop13 ment of affordable housing for Native Hawaiians

14 to carry out affordable housing activities with

15 those grant amounts.

16 ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

17 ‘‘(a) IN GENERAL.—Affordable housing activities

18 under this section are activities conducted in accordance

19 with the requirements of section 811 to—

20 ‘‘(1) develop or to support affordable housing for

21 rental or homeownership; or

22 ‘‘(2) provide housing services with respect to af23 fordable housing, through the activities described in

24 subsection (b).
105

•S 1452 EAH

1 ‘‘(b) ACTIVITIES.—The activities described in this sub2 section are the following:

3 ‘‘(1) DEVELOPMENT.—The acquisition, new con4 struction, reconstruction, or moderate or substantial

5 rehabilitation of affordable housing, which may

6 include—

7 ‘‘(A) real property acquisition;

8 ‘‘(B) site improvement;

9 ‘‘(C) the development of utilities and utility

10 services;

11 ‘‘(D) conversion;

12 ‘‘(E) demolition;

13 ‘‘(F) financing;

14 ‘‘(G) administration and planning; and

15 ‘‘(H) other related activities.

16 ‘‘(2) HOUSING SERVICES.—The provision of

17 housing-related services for affordable housing,

18 including—

19 ‘‘(A) housing counseling in connection with

20 rental or homeownership assistance;

21 ‘‘(B) the establishment and support of resi22 dent organizations and resident management

23 corporations;

24 ‘‘(C) energy auditing;
106

•S 1452 EAH

1 ‘‘(D) activities related to the provisions of

2 self-sufficiency and other services; and

3 ‘‘(E) other services related to assisting own4 ers, tenants, contractors, and other entities par5 ticipating or seeking to participate in other

6 housing activities assisted pursuant to this sec7 tion.

8 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

9 provision of management services for affordable hous10 ing, including—

11 ‘‘(A) the preparation of work specifications;

12 ‘‘(B) loan processing;

13 ‘‘(C) inspections;

14 ‘‘(D) tenant selection;

15 ‘‘(E) management of tenant-based rental as16 sistance; and

17 ‘‘(F) management of affordable housing

18 projects.

19 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI20 TIES.—The provision of safety, security, and law en21 forcement measures and activities appropriate to pro22 tect residents of affordable housing from crime.

23 ‘‘(5) MODEL ACTIVITIES.—Housing activities

24 under model programs that are—
107

•S 1452 EAH

1 ‘‘(A) designed to carry out the purposes of

2 this title; and

3 ‘‘(B) specifically approved by the Secretary

4 as appropriate for the purpose referred to in sub5 paragraph (A).

6 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

7 ‘‘(a) RENTS.—

8 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

9 (2), as a condition to receiving grant amounts under

10 this title, the Director shall develop written policies

11 governing rents and homebuyer payments charged for

12 dwelling units assisted under this title, including

13 methods by which such rents and homebuyer pay14 ments are determined.

15 ‘‘(2) MAXIMUM RENT.—In the case of any low16 income family residing in a dwelling unit assisted

17 with grant amounts under this title, the monthly rent

18 or homebuyer payment (as applicable) for that dwell19 ing unit may not exceed 30 percent of the monthly

20 adjusted income of that family.

21 ‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—

22 ‘‘(1) IN GENERAL.—The Director shall, using

23 amounts of any grants received under this title, re24 serve and use for operating under section 810 such

25 amounts as may be necessary to provide for the con-
108

•S 1452 EAH

1 tinued maintenance and efficient operation of such

2 housing.

3 ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This

4 subsection may not be construed to prevent the Direc5 tor, or any entity funded by the Department, from de6 molishing or disposing of housing, pursuant to regu7 lations established by the Secretary.

8 ‘‘(c) INSURANCE COVERAGE.—As a condition to receiv9 ing grant amounts under this title, the Director shall re10 quire adequate insurance coverage for housing units that

11 are owned or operated or assisted with grant amounts pro12 vided under this title.

13 ‘‘(d) ELIGIBILITY FOR ADMISSION.—As a condition to

14 receiving grant amounts under this title, the Director shall

15 develop written policies governing the eligibility, admission,

16 and occupancy of families for housing assisted with grant

17 amounts provided under this title.

18 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a condi19 tion to receiving grant amounts under this title, the Direc20 tor shall develop policies governing the management and

21 maintenance of housing assisted with grant amounts under

22 this title.
109

•S 1452 EAH

1 ‘‘SEC. 812. TYPES OF INVESTMENTS.

2 ‘‘(a) IN GENERAL.—Subject to section 811 and an ap3 plicable housing plan approved under section 803, the Di4 rector shall have—

5 ‘‘(1) the discretion to use grant amounts for af6 fordable housing activities through the use of—

7 ‘‘(A) equity investments;

8 ‘‘(B) interest-bearing loans or advances;

9 ‘‘(C) noninterest-bearing loans or advances;

10 ‘‘(D) interest subsidies;

11 ‘‘(E) the leveraging of private investments;

12 or

13 ‘‘(F) any other form of assistance that the

14 Secretary determines to be consistent with the

15 purposes of this title; and

16 ‘‘(2) the right to establish the terms of assistance

17 provided with funds referred to in paragraph (1).

18 ‘‘(b) INVESTMENTS.—The Director may invest grant

19 amounts for the purposes of carrying out affordable housing

20 activities in investment securities and other obligations, as

21 approved by the Secretary.

22 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR23 GETING.

24 ‘‘(a) IN GENERAL.—Housing shall qualify for afford25 able housing for purposes of this title only if—

26 ‘‘(1) each dwelling unit in the housing—
110

•S 1452 EAH

1 ‘‘(A) in the case of rental housing, is made

2 available for occupancy only by a family that is

3 a low-income family at the time of the initial oc4 cupancy of that family of that unit; and

5 ‘‘(B) in the case of housing for homeowner6 ship, is made available for purchase only by a

7 family that is a low-income family at the time

8 of purchase; and

9 ‘‘(2) each dwelling unit in the housing will re10 main affordable, according to binding commitments

11 satisfactory to the Secretary, for—

12 ‘‘(A) the remaining useful life of the prop13 erty (as determined by the Secretary) without re14 gard to the term of the mortgage or to transfer

15 of ownership; or

16 ‘‘(B) such other period as the Secretary de17 termines is the longest feasible period of time

18 consistent with sound economics and the pur19 poses of this title, except upon a foreclosure by

20 a lender (or upon other transfer in lieu of fore21 closure) if that action—

22 ‘‘(i) recognizes any contractual or legal

23 rights of any public agency, nonprofit spon24 sor, or other person or entity to take an ac25 tion that would—
111

•S 1452 EAH

1 ‘‘(I) avoid termination of low-in2 come affordability, in the case of fore3 closure; or

4 ‘‘(II) transfer ownership in lieu of

5 foreclosure; and

6 ‘‘(ii) is not for the purpose of avoiding

7 low-income affordability restrictions, as de8 termined by the Secretary.

9 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

10 housing assisted pursuant to section 809(a)(2)(B) shall be

11 considered affordable housing for purposes of this title.

12 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

13 ‘‘(a) LEASES.—Except to the extent otherwise provided

14 by or inconsistent with the laws of the State of Hawaii,

15 in renting dwelling units in affordable housing assisted

16 with grant amounts provided under this title, the Director,

17 owner, or manager shall use leases that—

18 ‘‘(1) do not contain unreasonable terms and con19 ditions;

20 ‘‘(2) require the Director, owner, or manager to

21 maintain the housing in compliance with applicable

22 housing codes and quality standards;

23 ‘‘(3) require the Director, owner, or manager to

24 give adequate written notice of termination of the
112

•S 1452 EAH

1 lease, which shall be the period of time required under

2 applicable State or local law;

3 ‘‘(4) specify that, with respect to any notice of

4 eviction or termination, notwithstanding any State or

5 local law, a resident shall be informed of the oppor6 tunity, before any hearing or trial, to examine any

7 relevant documents, record, or regulations directly re8 lated to the eviction or termination;

9 ‘‘(5) require that the Director, owner, or man10 ager may not terminate the tenancy, during the term

11 of the lease, except for serious or repeated violation of

12 the terms and conditions of the lease, violation of ap13 plicable Federal, State, or local law, or for other good

14 cause; and

15 ‘‘(6) provide that the Director, owner, or man16 ager may terminate the tenancy of a resident for any

17 activity, engaged in by the resident, any member of

18 the household of the resident, or any guest or other

19 person under the control of the resident, that—

20 ‘‘(A) threatens the health or safety of, or

21 right to peaceful enjoyment of the premises by,

22 other residents or employees of the Department,

23 owner, or manager;

24 ‘‘(B) threatens the health or safety of, or

25 right to peaceful enjoyment of their premises by,
113

•S 1452 EAH

1 persons residing in the immediate vicinity of the

2 premises; or

3 ‘‘(C) is criminal activity (including drug4 related criminal activity) on or off the premises.

5 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a con6 dition to receiving grant amounts under this title, the Di7 rector shall adopt and use written tenant and homebuyer

8 selection policies and criteria that—

9 ‘‘(1) are consistent with the purpose of providing

10 housing for low-income families;

11 ‘‘(2) are reasonably related to program eligibility

12 and the ability of the applicant to perform the obliga13 tions of the lease; and

14 ‘‘(3) provide for—

15 ‘‘(A) the selection of tenants and home16 buyers from a written waiting list in accordance

17 with the policies and goals set forth in an appli18 cable housing plan approved under section 803;

19 and

20 ‘‘(B) the prompt notification in writing of

21 any rejected applicant of the grounds for that re22 jection.

23 ‘‘SEC. 815. REPAYMENT.

24 ‘‘If the Department of Hawaiian Home Lands uses

25 grant amounts to provide affordable housing under activi-
114

•S 1452 EAH

1 ties under this title and, at any time during the useful life

2 of the housing, the housing does not comply with the re3 quirement under section 813(a)(2), the Secretary shall—

4 ‘‘(1) reduce future grant payments on behalf of

5 the Department by an amount equal to the grant

6 amounts used for that housing (under the authority

7 of section 819(a)(2)); or

8 ‘‘(2) require repayment to the Secretary of any

9 amount equal to those grant amounts.

10 ‘‘SEC. 816. ANNUAL ALLOCATION.

11 ‘‘For each fiscal year, the Secretary shall allocate any

12 amounts made available for assistance under this title for

13 the fiscal year, in accordance with the formula established

14 pursuant to section 817 to the Department of Hawaiian

15 Home Lands if the Department complies with the require16 ments under this title for a grant under this title.

17 ‘‘SEC. 817. ALLOCATION FORMULA.

18 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by regu19 lation issued not later than the expiration of the 6-month

20 period beginning on the date of the enactment of the Amer21 ican Homeownership and Economic Opportunity Act of

22 2000, in the manner provided under section 807, establish

23 a formula to provide for the allocation of amounts available

24 for a fiscal year for block grants under this title in accord25 ance with the requirements of this section.
115

•S 1452 EAH

1 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—The

2 formula under subsection (a) shall be based on factors that

3 reflect the needs for assistance for affordable housing activi4 ties, including—

5 ‘‘(1) the number of low-income dwelling units

6 owned or operated at the time pursuant to a contract

7 between the Director and the Secretary;

8 ‘‘(2) the extent of poverty and economic distress

9 and the number of Native Hawaiian families eligible

10 to reside on the Hawaiian Home Lands; and

11 ‘‘(3) any other objectively measurable conditions

12 that the Secretary and the Director may specify.

13 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es14 tablishing the formula under subsection (a), the Secretary

15 shall consider the relative administrative capacities of the

16 Department of Hawaiian Home Lands and other challenges

17 faced by the Department, including—

18 ‘‘(1) geographic distribution within Hawaiian

19 Home Lands; and

20 ‘‘(2) technical capacity.

21 ‘‘(d) EFFECTIVE DATE.—This section shall take effect

22 on the date of the enactment of the American Homeowner23 ship and Economic Opportunity Act of 2000.
116

•S 1452 EAH

1 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

2 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

3 AMOUNTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in sub5 section (b), if the Secretary finds after reasonable no6 tice and opportunity for a hearing that the Depart7 ment of Hawaiian Home Lands has failed to comply

8 substantially with any provision of this title, the Sec9 retary shall—

10 ‘‘(A) terminate payments under this title to

11 the Department;

12 ‘‘(B) reduce payments under this title to the

13 Department by an amount equal to the amount

14 of such payments that were not expended in ac15 cordance with this title; or

16 ‘‘(C) limit the availability of payments

17 under this title to programs, projects, or activi18 ties not affected by such failure to comply.

19 ‘‘(2) ACTIONS.—If the Secretary takes an action

20 under subparagraph (A), (B), or (C) of paragraph

21 (1), the Secretary shall continue that action until the

22 Secretary determines that the failure by the Depart23 ment to comply with the provision has been remedied

24 by the Department and the Department is in compli25 ance with that provision.
117

•S 1452 EAH

1 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL IN2 CAPACITY.—The Secretary may provide technical assistance

3 for the Department, either directly or indirectly, that is de4 signed to increase the capability and capacity of the Direc5 tor of the Department to administer assistance provided

6 under this title in compliance with the requirements under

7 this title if the Secretary makes a finding under subsection

8 (a), but determines that the failure of the Department to

9 comply substantially with the provisions of this title—

10 ‘‘(1) is not a pattern or practice of activities

11 constituting willful noncompliance; and

12 ‘‘(2) is a result of the limited capability or ca13 pacity of the Department of Hawaiian Home Lands.

14 ‘‘(c) REFERRAL FOR CIVIL ACTION.—

15 ‘‘(1) AUTHORITY.—In lieu of, or in addition to,

16 any action that the Secretary may take under sub17 section (a), if the Secretary has reason to believe that

18 the Department of Hawaiian Home Lands has failed

19 to comply substantially with any provision of this

20 title, the Secretary may refer the matter to the Attor21 ney General of the United States with a recommenda22 tion that an appropriate civil action be instituted.

23 ‘‘(2) CIVIL ACTION.—Upon receiving a referral

24 under paragraph (1), the Attorney General may bring

25 a civil action in any United States district court of
118

•S 1452 EAH

1 appropriate jurisdiction for such relief as may be ap2 propriate, including an action—

3 ‘‘(A) to recover the amount of the assistance

4 furnished under this title that was not expended

5 in accordance with this title; or

6 ‘‘(B) for mandatory or injunctive relief.

7 ‘‘(d) REVIEW.—

8 ‘‘(1) IN GENERAL.—If the Director receives no9 tice under subsection (a) of the termination, reduc10 tion, or limitation of payments under this Act, the

11 Director—

12 ‘‘(A) may, not later than 60 days after re13 ceiving such notice, file with the United States

14 Court of Appeals for the Ninth Circuit, or in the

15 United States Court of Appeals for the District

16 of Columbia, a petition for review of the action

17 of the Secretary; and

18 ‘‘(B) upon the filing of any petition under

19 subparagraph (A), shall forthwith transmit cop20 ies of the petition to the Secretary and the Attor21 ney General of the United States, who shall rep22 resent the Secretary in the litigation.

23 ‘‘(2) PROCEDURE.—

24 ‘‘(A) IN GENERAL.—The Secretary shall file

25 in the court a record of the proceeding on which
119

•S 1452 EAH

1 the Secretary based the action, as provided in

2 section 2112 of title 28, United States Code.

3 ‘‘(B) OBJECTIONS.—No objection to the ac4 tion of the Secretary shall be considered by the

5 court unless the Department has registered the

6 objection before the Secretary.

7 ‘‘(3) DISPOSITION.—

8 ‘‘(A) COURT PROCEEDINGS.—

9 ‘‘(i) JURISDICTION OF COURT.—The

10 court shall have jurisdiction to affirm or

11 modify the action of the Secretary or to set

12 the action aside in whole or in part.

13 ‘‘(ii) FINDINGS OF FACT.—If supported

14 by substantial evidence on the record con15 sidered as a whole, the findings of fact by

16 the Secretary shall be conclusive.

17 ‘‘(iii) ADDITION.—The court may

18 order evidence, in addition to the evidence

19 submitted for review under this subsection,

20 to be taken by the Secretary, and to be

21 made part of the record.

22 ‘‘(B) SECRETARY.—

23 ‘‘(i) IN GENERAL.—The Secretary, by

24 reason of the additional evidence referred to
120

•S 1452 EAH

1 in subparagraph (A) and filed with the

2 court—

3 ‘‘(I) may—

4 ‘‘(aa) modify the findings of

5 fact of the Secretary; or

6 ‘‘(bb) make new findings;

7 and

8 ‘‘(II) shall file—

9 ‘‘(aa) such modified or new

10 findings; and

11 ‘‘(bb) the recommendation of

12 the Secretary, if any, for the

13 modification or setting aside of

14 the original action of the Sec15 retary.

16 ‘‘(ii) FINDINGS.—The findings referred

17 to in clause (i)(II)(bb) shall, with respect to

18 a question of fact, be considered to be con19 clusive if those findings are—

20 ‘‘(I) supported by substantial evi21 dence on the record; and

22 ‘‘(II) considered as a whole.

23 ‘‘(4) FINALITY.—
121

•S 1452 EAH

1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), upon the filing of the record

3 under this subsection with the court—

4 ‘‘(i) the jurisdiction of the court shall

5 be exclusive; and

6 ‘‘(ii) the judgment of the court shall be

7 final.

8 ‘‘(B) REVIEW BY SUPREME COURT.—A

9 judgment under subparagraph (A) shall be sub10 ject to review by the Supreme Court of the

11 United States upon writ of certiorari or certifi12 cation, as provided in section 1254 of title 28,

13 United States Code.

14 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

15 ‘‘(a) ENFORCEABLE AGREEMENTS.—

16 ‘‘(1) IN GENERAL.—The Director, through bind17 ing contractual agreements with owners or other au18 thorized entities, shall ensure long-term compliance

19 with the provisions of this title.

20 ‘‘(2) MEASURES.—The measures referred to in

21 paragraph (1) shall provide for—

22 ‘‘(A) to the extent allowable by Federal and

23 State law, the enforcement of the provisions of

24 this title by the Department and the Secretary;

25 and
122

•S 1452 EAH

1 ‘‘(B) remedies for breach of the provisions

2 referred to in paragraph (1).

3 ‘‘(b) PERIODIC MONITORING.—

4 ‘‘(1) IN GENERAL.—Not less frequently than an5 nually, the Director shall review the activities con6 ducted and housing assisted under this title to assess

7 compliance with the requirements of this title.

8 ‘‘(2) REVIEW.—Each review under paragraph

9 (1) shall include onsite inspection of housing to deter10 mine compliance with applicable requirements.

11 ‘‘(3) RESULTS.—The results of each review under

12 paragraph (1) shall be—

13 ‘‘(A) included in a performance report of

14 the Director submitted to the Secretary under

15 section 820; and

16 ‘‘(B) made available to the public.

17 ‘‘(c) PERFORMANCE MEASURES.—The Secretary shall

18 establish such performance measures as may be necessary

19 to assess compliance with the requirements of this title.

20 ‘‘SEC. 820. PERFORMANCE REPORTS.

21 ‘‘(a) REQUIREMENT.—For each fiscal year, the Direc22 tor shall—

23 ‘‘(1) review the progress the Department has

24 made during that fiscal year in carrying out the
123

•S 1452 EAH

1 housing plan submitted by the Department under sec2 tion 803; and

3 ‘‘(2) submit a report to the Secretary (in a form

4 acceptable to the Secretary) describing the conclusions

5 of the review.

6 ‘‘(b) CONTENT.—Each report submitted under this sec7 tion for a fiscal year shall—

8 ‘‘(1) describe the use of grant amounts provided

9 to the Department of Hawaiian Home Lands for that

10 fiscal year;

11 ‘‘(2) assess the relationship of the use referred to

12 in paragraph (1) to the goals identified in the hous13 ing plan;

14 ‘‘(3) indicate the programmatic accomplishments

15 of the Department; and

16 ‘‘(4) describe the manner in which the Depart17 ment would change its housing plan submitted under

18 section 803 as a result of its experiences.

19 ‘‘(c) SUBMISSIONS.—The Secretary shall—

20 ‘‘(1) establish a date for submission of each re21 port under this section;

22 ‘‘(2) review each such report; and

23 ‘‘(3) with respect to each such report, make rec24 ommendations as the Secretary considers appropriate

25 to carry out the purposes of this title.
124

•S 1452 EAH

1 ‘‘(d) PUBLIC AVAILABILITY.—

2 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre3 paring a report under this section, the Director shall

4 make the report publicly available to the beneficiaries

5 of the Hawaiian Homes Commission Act, 1920 (42

6 Stat. 108 et seq.) and give a sufficient amount of time

7 to permit those beneficiaries to comment on that re8 port before it is submitted to the Secretary (in such

9 manner and at such time as the Director may deter10 mine).

11 ‘‘(2) SUMMARY OF COMMENTS.—The report shall

12 include a summary of any comments received by the

13 Director from beneficiaries under paragraph (1) re14 garding the program to carry out the housing plan.

15 ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

16 ‘‘(a) ANNUAL REVIEW.—

17 ‘‘(1) IN GENERAL.—The Secretary shall, not less

18 frequently than on an annual basis, make such re19 views and audits as may be necessary or appropriate

20 to determine whether—

21 ‘‘(A) the Director has—

22 ‘‘(i) carried out eligible activities

23 under this title in a timely manner;

24 ‘‘(ii) carried out and made certifi25 cations in accordance with the requirements
125

•S 1452 EAH

1 and the primary objectives of this title and

2 with other applicable laws; and

3 ‘‘(iii) a continuing capacity to carry

4 out the eligible activities in a timely man5 ner;

6 ‘‘(B) the Director has complied with the

7 housing plan submitted by the Director under

8 section 803; and

9 ‘‘(C) the performance reports of the Depart10 ment under section 821 are accurate.

11 ‘‘(2) ONSITE VISITS.—Each review conducted

12 under this section shall, to the extent practicable, in13 clude onsite visits by employees of the Department of

14 Housing and Urban Development.

15 ‘‘(b) REPORT BY SECRETARY.—The Secretary shall

16 give the Department of Hawaiian Home Lands not less

17 than 30 days to review and comment on a report under

18 this subsection. After taking into consideration the com19 ments of the Department, the Secretary may revise the re20 port and shall make the comments of the Department and

21 the report with any revisions, readily available to the public

22 not later than 30 days after receipt of the comments of the

23 Department.

24 ‘‘(c) EFFECT OF REVIEWS.—The Secretary may make

25 appropriate adjustments in the amount of annual grants
126

•S 1452 EAH

1 under this title in accordance with the findings of the Sec2 retary pursuant to reviews and audits under this section.

3 The Secretary may adjust, reduce, or withdraw grant

4 amounts, or take other action as appropriate in accordance

5 with the reviews and audits of the Secretary under this sec6 tion, except that grant amounts already expended on afford7 able housing activities may not be recaptured or deducted

8 from future assistance provided to the Department of Ha9 waiian Home Lands.

10 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

11 ‘‘To the extent that the financial transactions of the

12 Department of Hawaiian Home Lands involving grant

13 amounts under this title relate to amounts provided under

14 this title, those transactions may be audited by the Comp15 troller General of the United States under such regulations

16 as may be prescribed by the Comptroller General. The

17 Comptroller General of the United States shall have access

18 to all books, accounts, records, reports, files, and other pa19 pers, things, or property belonging to or in use by the De20 partment of Hawaiian Home Lands pertaining to such fi21 nancial transactions and necessary to facilitate the audit.

22 ‘‘SEC. 823. REPORTS TO CONGRESS.

23 ‘‘(a) IN GENERAL.—Not later than 90 days after the

24 conclusion of each fiscal year in which assistance under this
127

•S 1452 EAH

1 title is made available, the Secretary shall submit to Con2 gress a report that contains—

3 ‘‘(1) a description of the progress made in ac4 complishing the objectives of this title;

5 ‘‘(2) a summary of the use of funds available

6 under this title during the preceding fiscal year; and

7 ‘‘(3) a description of the aggregate outstanding

8 loan guarantees under section 184A of the Housing

9 and Community Development Act of 1992.

10 ‘‘(b) RELATED REPORTS.—The Secretary may require

11 the Director to submit to the Secretary such reports and

12 other information as may be necessary in order for the Sec13 retary to prepare the report required under subsection (a).

14 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated to the De16 partment of Housing and Urban Development for grants

17 under this title such sums as may be necessary for each

18 of fiscal years 2001, 2002, 2003, 2004, and 2005.’’.

19 SEC. 514. LOAN GUARANTEES.

20 Subtitle E of title I of the Housing and Community

21 Development Act of 1992 is amended by inserting after sec22 tion 184 (12 U.S.C. 1715z–13a) the following:

23 ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN

24 HOUSING.

25 ‘‘(a) DEFINITIONS.—In this section:
128

•S 1452 EAH

1 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS.—

2 The term ‘Department of Hawaiian Home Lands’

3 means the agency or department of the government of

4 the State of Hawaii that is responsible for the admin5 istration of the Hawaiian Homes Commission Act,

6 1920 (42 Stat. 108 et seq.).

7 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti8 ty’ means a Native Hawaiian family, the Department

9 of Hawaiian Home Lands, the Office of Hawaiian

10 Affairs, and private nonprofit or private for-profit or11 ganizations experienced in the planning and develop12 ment of affordable housing for Native Hawaiians.

13 ‘‘(3) FAMILY.—The term ‘family’ means one or

14 more persons maintaining a household, as the Sec15 retary shall by regulation provide.

16 ‘‘(4) GUARANTEE FUND.—The term ‘Guarantee

17 Fund’ means the Native Hawaiian Housing Loan

18 Guarantee Fund established under subsection (i).

19 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha20 waiian Home Lands’ means lands that—

21 ‘‘(A) have the status of Hawaiian Home

22 Lands under section 204 of the Hawaiian Homes

23 Commission Act (42 Stat. 110); or

24 ‘‘(B) are acquired pursuant to that Act.
129

•S 1452 EAH

1 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Ha2 waiian’ means any individual who is—

3 ‘‘(A) a citizen of the United States; and

4 ‘‘(B) a descendant of the aboriginal people,

5 who, prior to 1778, occupied and exercised sov6 ereignty in the area that currently constitutes

7 the State of Hawaii, as evidenced by—

8 ‘‘(i) genealogical records;

9 ‘‘(ii) verification by kupuna (elders) or

10 kama’aina (long-term community resi11 dents); or

12 ‘‘(iii) birth records of the State of Ha13 waii.

14 ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The term

15 ‘Office of Hawaiian Affairs’ means the entity of that

16 name established under the constitution of the State

17 of Hawaii.

18 ‘‘(b) AUTHORITY.—To provide access to sources of pri19 vate financing to Native Hawaiian families who otherwise

20 could not acquire housing financing because of the unique

21 legal status of the Hawaiian Home Lands or as a result

22 of a lack of access to private financial markets, the Sec23 retary may guarantee an amount not to exceed 100 percent

24 of the unpaid principal and interest that is due on an eligi25 ble loan under subsection (b).
130

•S 1452 EAH

1 ‘‘(c) ELIGIBLE LOANS.—Under this section, a loan is

2 an eligible loan if that loan meets the following require3 ments:

4 ‘‘(1) ELIGIBLE BORROWERS.—The loan is made

5 only to a borrower who is—

6 ‘‘(A) a Native Hawaiian family;

7 ‘‘(B) the Department of Hawaiian Home

8 Lands;

9 ‘‘(C) the Office of Hawaiian Affairs; or

10 ‘‘(D) a private nonprofit organization expe11 rienced in the planning and development of af12 fordable housing for Native Hawaiians.

13 ‘‘(2) ELIGIBLE HOUSING.—

14 ‘‘(A) IN GENERAL.—The loan will be used

15 to construct, acquire, or rehabilitate not more

16 than 4-family dwellings that are standard hous17 ing and are located on Hawaiian Home Lands

18 for which a housing plan described in subpara19 graph (B) applies.

20 ‘‘(B) HOUSING PLAN.—A housing plan de21 scribed in this subparagraph is a housing plan

22 that—

23 ‘‘(i) has been submitted and approved

24 by the Secretary under section 803 of the
131

•S 1452 EAH

1 Native American Housing Assistance and

2 Self-Determination Act of 1996; and

3 ‘‘(ii) provides for the use of loan guar4 antees under this section to provide afford5 able homeownership housing on Hawaiian

6 Home Lands.

7 ‘‘(3) SECURITY.—The loan may be secured by

8 any collateral authorized under applicable Federal or

9 State law.

10 ‘‘(4) LENDERS.—

11 ‘‘(A) IN GENERAL.—The loan shall be made

12 only by a lender approved by, and meeting

13 qualifications established by, the Secretary, in14 cluding any lender described in subparagraph

15 (B), except that a loan otherwise insured or

16 guaranteed by an agency of the Federal Govern17 ment or made by the Department of Hawaiian

18 Home Lands from amounts borrowed from the

19 United States shall not be eligible for a guar20 antee under this section.

21 ‘‘(B) APPROVAL.—The following lenders

22 shall be considered to be lenders that have been

23 approved by the Secretary:

24 ‘‘(i) Any mortgagee approved by the

25 Secretary for participation in the single
132

•S 1452 EAH

1 family mortgage insurance program under

2 title II of the National Housing Act (12

3 U.S.C.A. 1707 et seq.).

4 ‘‘(ii) Any lender that makes housing

5 loans under chapter 37 of title 38, United

6 States Code, that are automatically guaran7 teed under section 3702(d) of title 38,

8 United States Code.

9 ‘‘(iii) Any lender approved by the Sec10 retary of Agriculture to make guaranteed

11 loans for single family housing under the

12 Housing Act of 1949 (42 U.S.C.A. 1441 et

13 seq.).

14 ‘‘(iv) Any other lender that is super15 vised, approved, regulated, or insured by

16 any agency of the Federal Government.

17 ‘‘(5) TERMS.—The loan shall—

18 ‘‘(A) be made for a term not exceeding 30

19 years;

20 ‘‘(B) bear interest (exclusive of the guar21 antee fee under subsection (d) and service

22 charges, if any) at a rate agreed upon by the

23 borrower and the lender and determined by the

24 Secretary to be reasonable, but not to exceed the

25 rate generally charged in the area (as deter-
133

•S 1452 EAH

1 mined by the Secretary) for home mortgage loans

2 not guaranteed or insured by any agency or in3 strumentality of the Federal Government;

4 ‘‘(C) involve a principal obligation not

5 exceeding—

6 ‘‘(i) 97.75 percent of the appraised

7 value of the property as of the date the loan

8 is accepted for guarantee (or 98.75 percent

9 if the value of the property is $50,000 or

10 less); or

11 ‘‘(ii) the amount approved by the Sec12 retary under this section; and

13 ‘‘(D) involve a payment on account of the

14 property—

15 ‘‘(i) in cash or its equivalent; or

16 ‘‘(ii) through the value of any improve17 ments to the property made through the

18 skilled or unskilled labor of the borrower, as

19 the Secretary shall provide.

20 ‘‘(d) CERTIFICATE OF GUARANTEE.—

21 ‘‘(1) APPROVAL PROCESS.—

22 ‘‘(A) IN GENERAL.—Before the Secretary

23 approves any loan for guarantee under this sec24 tion, the lender shall submit the application for

25 the loan to the Secretary for examination.
134

•S 1452 EAH

1 ‘‘(B) APPROVAL.—If the Secretary approves

2 the application submitted under subparagraph

3 (A), the Secretary shall issue a certificate under

4 this subsection as evidence of the loan guarantee

5 approved.

6 ‘‘(2) STANDARD FOR APPROVAL.—The Secretary

7 may approve a loan for guarantee under this section

8 and issue a certificate under this subsection only if

9 the Secretary determines that there is a reasonable

10 prospect of repayment of the loan.

11 ‘‘(3) EFFECT.—

12 ‘‘(A) IN GENERAL.—A certificate of guar13 antee issued under this subsection by the Sec14 retary shall be conclusive evidence of the eligi15 bility of the loan for guarantee under this section

16 and the amount of that guarantee.

17 ‘‘(B) EVIDENCE.—The evidence referred to

18 in subparagraph (A) shall be incontestable in the

19 hands of the bearer.

20 ‘‘(C) FULL FAITH AND CREDIT.—The full

21 faith and credit of the United States is pledged

22 to the payment of all amounts agreed to be paid

23 by the Secretary as security for the obligations

24 made by the Secretary under this section.
135

•S 1452 EAH

1 ‘‘(4) FRAUD AND MISREPRESENTATION.—This

2 subsection may not be construed—

3 ‘‘(A) to preclude the Secretary from estab4 lishing defenses against the original lender based

5 on fraud or material misrepresentation; or

6 ‘‘(B) to bar the Secretary from establishing

7 by regulations that are on the date of issuance

8 or disbursement, whichever is earlier, partial de9 fenses to the amount payable on the guarantee.

10 ‘‘(e) GUARANTEE FEE.—

11 ‘‘(1) IN GENERAL.—The Secretary shall fix and

12 collect a guarantee fee for the guarantee of a loan

13 under this section, which may not exceed the amount

14 equal to 1 percent of the principal obligation of the

15 loan.

16 ‘‘(2) PAYMENT.—The fee under this subsection

17 shall—

18 ‘‘(A) be paid by the lender at time of

19 issuance of the guarantee; and

20 ‘‘(B) be adequate, in the determination of

21 the Secretary, to cover expenses and probable

22 losses.

23 ‘‘(3) DEPOSIT.—The Secretary shall deposit any

24 fees collected under this subsection in the Native Ha-
136

•S 1452 EAH

1 waiian Housing Loan Guarantee Fund established

2 under subsection (j).

3 ‘‘(f) LIABILITY UNDER GUARANTEE.—The liability

4 under a guarantee provided under this section shall de5 crease or increase on a pro rata basis according to any de6 crease or increase in the amount of the unpaid obligation

7 under the provisions of the loan agreement involved.

8 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwithstanding

9 any other provision of law, any loan guaranteed under this

10 section, including the security given for the loan, may be

11 sold or assigned by the lender to any financial institution

12 subject to examination and supervision by an agency of the

13 Federal Government or of any State or the District of Co14 lumbia.

15 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

16 MONEY PENALTIES.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) GROUNDS FOR ACTION.—The Sec19 retary may take action under subparagraph (B)

20 if the Secretary determines that any lender or

21 holder of a guarantee certificate under subsection

22 (c)—

23 ‘‘(i) has failed—

24 ‘‘(I) to maintain adequate ac25 counting records;
137

•S 1452 EAH

1 ‘‘(II) to service adequately loans

2 guaranteed under this section; or

3 ‘‘(III) to exercise proper credit or

4 underwriting judgment; or

5 ‘‘(ii) has engaged in practices other6 wise detrimental to the interest of a bor7 rower or the United States.

8 ‘‘(B) ACTIONS.—Upon a determination by

9 the Secretary that a holder of a guarantee certifi10 cate under subsection (c) has failed to carry out

11 an activity described in subparagraph (A)(i) or

12 has engaged in practices described in subpara13 graph (A)(ii), the Secretary may—

14 ‘‘(i) refuse, either temporarily or per15 manently, to guarantee any further loans

16 made by such lender or holder;

17 ‘‘(ii) bar such lender or holder from ac18 quiring additional loans guaranteed under

19 this section; and

20 ‘‘(iii) require that such lender or holder

21 assume not less than 10 percent of any loss

22 on further loans made or held by the lender

23 or holder that are guaranteed under this

24 section.
138

•S 1452 EAH

1 ‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL

2 VIOLATIONS.—

3 ‘‘(A) IN GENERAL.—The Secretary may im4 pose a civil monetary penalty on a lender or

5 holder of a guarantee certificate under subsection

6 (d) if the Secretary determines that the holder or

7 lender has intentionally failed—

8 ‘‘(i) to maintain adequate accounting

9 records;

10 ‘‘(ii) to adequately service loans guar11 anteed under this section; or

12 ‘‘(iii) to exercise proper credit or un13 derwriting judgment.

14 ‘‘(B) PENALTIES.—A civil monetary pen15 alty imposed under this paragraph shall be im16 posed in the manner and be in an amount pro17 vided under section 536 of the National Housing

18 Act (12 U.S.C.A. 1735f–1) with respect to mort19 gagees and lenders under that Act.

20 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

21 FAITH.—Notwithstanding paragraphs (1) and (2), if

22 a loan was made in good faith, the Secretary may not

23 refuse to pay a lender or holder of a valid guarantee

24 on that loan, without regard to whether the lender or

25 holder is barred under this subsection.
139

•S 1452 EAH

1 ‘‘(i) PAYMENT UNDER GUARANTEE.—

2 ‘‘(1) LENDER OPTIONS.—

3 ‘‘(A) IN GENERAL.—

4 ‘‘(i) NOTIFICATION.—If a borrower on

5 a loan guaranteed under this section de6 faults on the loan, the holder of the guar7 antee certificate shall provide written notice

8 of the default to the Secretary.

9 ‘‘(ii) PAYMENT.—Upon providing the

10 notice required under clause (i), the holder

11 of the guarantee certificate shall be entitled

12 to payment under the guarantee (subject to

13 the provisions of this section) and may pro14 ceed to obtain payment in one of the fol15 lowing manners:

16 ‘‘(I) FORECLOSURE.—

17 ‘‘(aa) IN GENERAL.—The

18 holder of the certificate may ini19 tiate foreclosure proceedings (after

20 providing written notice of that

21 action to the Secretary).

22 ‘‘(bb) PAYMENT.—Upon a

23 final order by the court author24 izing foreclosure and submission

25 to the Secretary of a claim for
140

•S 1452 EAH

1 payment under the guarantee, the

2 Secretary shall pay to the holder

3 of the certificate the pro rata por4 tion of the amount guaranteed (as

5 determined pursuant to subsection

6 (f)) plus reasonable fees and ex7 penses as approved by the Sec8 retary.

9 ‘‘(cc) SUBROGATION.—The

10 rights of the Secretary shall be

11 subrogated to the rights of the

12 holder of the guarantee. The hold13 er shall assign the obligation and

14 security to the Secretary.

15 ‘‘(II) NO FORECLOSURE.—

16 ‘‘(aa) IN GENERAL.—Without

17 seeking foreclosure (or in any case

18 in which a foreclosure proceeding

19 initiated under clause (i) con20 tinues for a period in excess of 1

21 year), the holder of the guarantee

22 may submit to the Secretary a re23 quest to assign the obligation and

24 security interest to the Secretary

25 in return for payment of the
141

•S 1452 EAH

1 claim under the guarantee. The

2 Secretary may accept assignment

3 of the loan if the Secretary deter4 mines that the assignment is in

5 the best interest of the United

6 States.

7 ‘‘(bb) PAYMENT.—Upon as8 signment, the Secretary shall pay

9 to the holder of the guarantee the

10 pro rata portion of the amount

11 guaranteed (as determined under

12 subsection (f)).

13 ‘‘(cc) SUBROGATION.—The

14 rights of the Secretary shall be

15 subrogated to the rights of the

16 holder of the guarantee. The hold17 er shall assign the obligation and

18 security to the Secretary.

19 ‘‘(B) REQUIREMENTS.—Before any pay20 ment under a guarantee is made under subpara21 graph (A), the holder of the guarantee shall ex22 haust all reasonable possibilities of collection.

23 Upon payment, in whole or in part, to the hold24 er, the note or judgment evidencing the debt shall

25 be assigned to the United States and the holder
142

•S 1452 EAH

1 shall have no further claim against the borrower

2 or the United States. The Secretary shall then

3 take such action to collect as the Secretary deter4 mines to be appropriate.

5 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

6 ‘‘(A) IN GENERAL.—If a borrower defaults

7 on a loan guaranteed under this section that in8 volves a security interest in restricted Hawaiian

9 Home Land property, the mortgagee or the Sec10 retary shall only pursue liquidation after offer11 ing to transfer the account to another eligible

12 Hawaiian family or the Department of Hawai13 ian Home Lands.

14 ‘‘(B) LIMITATION.—If, after action is taken

15 under subparagraph (A), the mortgagee or the

16 Secretary subsequently proceeds to liquidate the

17 account, the mortgagee or the Secretary shall not

18 sell, transfer, or otherwise dispose of or alienate

19 the property described in subparagraph (A) ex20 cept to another eligible Hawaiian family or to

21 the Department of Hawaiian Home Lands.

22 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE FUND.—

23 ‘‘(1) ESTABLISHMENT.—There is established in

24 the Treasury of the United States the Hawaiian
143

•S 1452 EAH

1 Housing Loan Guarantee Fund for the purpose of

2 providing loan guarantees under this section.

3 ‘‘(2) CREDITS.—The Guarantee Fund shall be

4 credited with—

5 ‘‘(A) any amount, claims, notes, mortgages,

6 contracts, and property acquired by the Sec7 retary under this section, and any collections

8 and proceeds therefrom;

9 ‘‘(B) any amounts appropriated pursuant

10 to paragraph (7);

11 ‘‘(C) any guarantee fees collected under sub12 section (d); and

13 ‘‘(D) any interest or earnings on amounts

14 invested under paragraph (4).

15 ‘‘(3) USE.—Amounts in the Guarantee Fund

16 shall be available, to the extent provided in appro17 priations Acts, for—

18 ‘‘(A) fulfilling any obligations of the Sec19 retary with respect to loans guaranteed under

20 this section, including the costs (as that term is

21 defined in section 502 of the Federal Credit Re22 form Act of 1990 (2 U.S.C. 661a)) of such loans;

23 ‘‘(B) paying taxes, insurance, prior liens,

24 expenses necessary to make fiscal adjustment in

25 connection with the application and transmittal
144

•S 1452 EAH

1 of collections, and other expenses and advances to

2 protect the Secretary for loans which are guaran3 teed under this section or held by the Secretary;

4 ‘‘(C) acquiring such security property at

5 foreclosure sales or otherwise;

6 ‘‘(D) paying administrative expenses in

7 connection with this section; and

8 ‘‘(E) reasonable and necessary costs of reha9 bilitation and repair to properties that the Sec10 retary holds or owns pursuant to this section.

11 ‘‘(4) INVESTMENT.—Any amounts in the Guar12 antee Fund determined by the Secretary to be in ex13 cess of amounts currently required at the time of the

14 determination to carry out this section may be in15 vested in obligations of the United States.

16 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR17 ANTEE LOANS AND MORTGAGES.—

18 ‘‘(A) REQUIREMENT OF APPROPRIATIONS.—

19 The authority of the Secretary to enter into com20 mitments to guarantee loans under this section

21 shall be effective for any fiscal year to the extent,

22 or in such amounts as are, or have been, pro23 vided in appropriations Acts, without regard to

24 the fiscal year for which such amounts were ap25 propriated.
145

•S 1452 EAH

1 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN2 TEES.—The authority of the Secretary to enter

3 into commitments to guarantee loans under this

4 section shall be effective for any fiscal year only

5 to the extent that amounts in the Guarantee

6 Fund are or have been made available in appro7 priations Acts to cover the costs (as that term is

8 defined in section 502 of the Federal Credit Re9 form Act of 1990 (2 U.S.C. 661a)) of such loan

10 guarantees for such fiscal year. Any amounts ap11 propriated pursuant to this subparagraph shall

12 remain available until expended.

13 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE14 GATE PRINCIPAL AMOUNT.—Subject to the limi15 tations in subparagraphs (A) and (B), the Sec16 retary may enter into commitments to guarantee

17 loans under this section for each of fiscal years

18 2001, 2002, 2003, 2004, and 2005 with an ag19 gregate outstanding principal amount not ex20 ceeding $100,000,000 for each such fiscal year.

21 ‘‘(6) LIABILITIES.—All liabilities and obligations

22 of the assets credited to the Guarantee Fund under

23 paragraph (2)(A) shall be liabilities and obligations

24 of the Guarantee Fund.
146

•S 1452 EAH

1 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated to the Guar3 antee Fund to carry out this section such sums as

4 may be necessary for each of fiscal years 2001, 2002,

5 2003, 2004, and 2005.

6 ‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—

7 ‘‘(1) IN GENERAL.—The Secretary shall, by regu8 lation, establish housing safety and quality standards

9 to be applied for use under this section.

10 ‘‘(2) STANDARDS.—The standards referred to in

11 paragraph (1) shall—

12 ‘‘(A) provide sufficient flexibility to permit

13 the use of various designs and materials in hous14 ing acquired with loans guaranteed under this

15 section; and

16 ‘‘(B) require each dwelling unit in any

17 housing acquired in the manner described in

18 subparagraph (A) to—

19 ‘‘(i) be decent, safe, sanitary, and mod20 est in size and design;

21 ‘‘(ii) conform with applicable general

22 construction standards for the region in

23 which the housing is located;

24 ‘‘(iii) contain a plumbing system

25 that—
147

•S 1452 EAH

1 ‘‘(I) uses a properly installed sys2 tem of piping;

3 ‘‘(II) includes a kitchen sink and

4 a partitional bathroom with lavatory,

5 toilet, and bath or shower; and

6 ‘‘(III) uses water supply, plumb7 ing, and sewage disposal systems that

8 conform to any minimum standards

9 established by the applicable county or

10 State;

11 ‘‘(iv) contain an electrical system

12 using wiring and equipment properly in13 stalled to safely supply electrical energy for

14 adequate lighting and for operation of ap15 pliances that conforms to any appropriate

16 county, State, or national code;

17 ‘‘(v) be not less than the size provided

18 under the applicable locally adopted stand19 ards for size of dwelling units, except that

20 the Secretary, upon request of the Depart21 ment of Hawaiian Home Lands may waive

22 the size requirements under this paragraph;

23 and

24 ‘‘(vi) conform with the energy perform25 ance requirements for new construction es-
148

•S 1452 EAH

1 tablished by the Secretary under section

2 526(a) of the National Housing Act (12

3 U.S.C.A. 1735f–4), unless the Secretary de4 termines that the requirements are not ap5 plicable.

6 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—To

7 the extent that the requirements of title VI of the Civil

8 Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of the Fair

9 Housing Act (42 U.S.C.A. 3601 et seq.) apply to a guar10 antee provided under this subsection, nothing in the re11 quirements concerning discrimination on the basis of race

12 shall be construed to prevent the provision of the guarantee

13 to an eligible entity on the basis that the entity serves Na14 tive Hawaiian families or is a Native Hawaiian family.’’.

15 TITLE VI—MANUFACTURED

16 HOUSING IMPROVEMENT

17 SEC. 601. SHORT TITLE; REFERENCES.

18 (a) SHORT TITLE.—This title may be cited as the

19 ‘‘Manufactured Housing Improvement Act of 2000’’.

20 (b) REFERENCES.—Whenever in this title an amend21 ment is expressed in terms of an amendment to, or repeal

22 of, a section or other provision, the reference shall be consid23 ered to be made to that section or other provision of the

24 National Manufactured Housing Construction and Safety

25 Standards Act of 1974 (42 U.S.C. 5401 et seq.).
149

•S 1452 EAH

1 SEC. 602. FINDINGS AND PURPOSES.

2 Section 602 (42 U.S.C. 5401) is amended to read as

3 follows:

4 ‘‘SEC. 602. FINDINGS AND PURPOSES.

5 ‘‘(a) FINDINGS.—Congress finds that—

6 ‘‘(1) manufactured housing plays a vital role in

7 meeting the housing needs of the Nation; and

8 ‘‘(2) manufactured homes provide a significant

9 resource for affordable homeownership and rental

10 housing accessible to all Americans.

11 ‘‘(b) PURPOSES.—The purposes of this title are—

12 ‘‘(1) to protect the quality, durability, safety,

13 and affordability of manufactured homes;

14 ‘‘(2) to facilitate the availability of affordable

15 manufactured homes and to increase homeownership

16 for all Americans;

17 ‘‘(3) to provide for the establishment of practical,

18 uniform, and, to the extent possible, performance19 based Federal construction standards for manufac20 tured homes;

21 ‘‘(4) to encourage innovative and cost-effective

22 construction techniques for manufactured homes;

23 ‘‘(5) to protect residents of manufactured homes

24 with respect to personal injuries and the amount of

25 insurance costs and property damages in manufac-
150

•S 1452 EAH

1 tured housing, consistent with the other purposes of

2 this section;

3 ‘‘(6) to establish a balanced consensus process for

4 the development, revision, and interpretation of Fed5 eral construction and safety standards for manufac6 tured homes and related regulations for the enforce7 ment of such standards;

8 ‘‘(7) to ensure uniform and effective enforcement

9 of Federal construction and safety standards for man10 ufactured homes; and

11 ‘‘(8) to ensure that the public interest in, and

12 need for, affordable manufactured housing is duly

13 considered in all determinations relating to the Fed14 eral standards and their enforcement.’’.

15 SEC. 603. DEFINITIONS.

16 (a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is

17 amended—

18 (1) in paragraph (2), by striking ‘‘dealer’’ and

19 inserting ‘‘retailer’’;

20 (2) in paragraph (12), by striking ‘‘and’’ at the

21 end;

22 (3) in paragraph (13), by striking the period at

23 the end and inserting a semicolon; and

24 (4) by adding at the end the following:
151

•S 1452 EAH

1 ‘‘(14) ‘administering organization’ means the

2 recognized, voluntary, private sector, consensus stand3 ards body with specific experience in developing

4 model residential building codes and standards in5 volving all disciplines regarding construction and

6 safety that administers the consensus standards

7 through a development process;

8 ‘‘(15) ‘consensus committee’ means the committee

9 established under section 604(a)(3);

10 ‘‘(16) ‘consensus standards development process’

11 means the process by which additions, revisions, and

12 interpretations to the Federal manufactured home

13 construction and safety standards and enforcement

14 regulations shall be developed and recommended to the

15 Secretary by the consensus committee;

16 ‘‘(17) ‘primary inspection agency’ means a State

17 agency or private organization that has been ap18 proved by the Secretary to act as a design approval

19 primary inspection agency or a production inspection

20 primary inspection agency, or both;

21 ‘‘(18) ‘design approval primary inspection agen22 cy’ means a State agency or private organization that

23 has been approved by the Secretary to evaluate and

24 either approve or disapprove manufactured home de25 signs and quality control procedures;
152

•S 1452 EAH

1 ‘‘(19) ‘installation standards’ means reasonable

2 specifications for the installation of a manufactured

3 home, at the place of occupancy, to ensure proper

4 siting, the joining of all sections of the home, and the

5 installation of stabilization, support, or anchoring

6 systems;

7 ‘‘(20) ‘monitoring’ means the process of periodic

8 review of the primary inspection agencies, by the Sec9 retary or by a State agency under an approved State

10 plan pursuant to section 623, in accordance with reg11 ulations promulgated under this title, giving due con12 sideration to the recommendations of the consensus

13 committee under section 604(b), which process shall be

14 for the purpose of ensuring that the primary inspec15 tion agencies are discharging their duties under this

16 title; and

17 ‘‘(21) ‘production inspection primary inspection

18 agency’ means a State agency or private organization

19 that has been approved by the Secretary to evaluate

20 the ability of manufactured home manufacturing

21 plants to comply with approved quality control proce22 dures and with the Federal manufactured home con23 struction and safety standards promulgated here24 under, including the inspection of homes in the

25 plant.’’.
153

•S 1452 EAH

1 (b) CONFORMING AMENDMENTS.—The National Manu2 factured Housing Construction and Safety Standards Act

3 of 1974 (42 U.S.C. 5401 et seq.) is amended—

4 (1) in section 613 (42 U.S.C. 5412), by striking

5 ‘‘dealer’’ each place it appears and inserting ‘‘re6 tailer’’;

7 (2) in section 614(f) (42 U.S.C. 5413(f)), by

8 striking ‘‘dealer’’ each place it appears and inserting

9 ‘‘retailer’’;

10 (3) in section 615 (42 U.S.C. 5414)—

11 (A) in subsection (b)(1), by striking ‘‘deal12 er’’ and inserting ‘‘retailer’’;

13 (B) in subsection (b)(3), by striking ‘‘dealer

14 or dealers’’ and inserting ‘‘retailer or retailers’’;

15 and

16 (C) in subsections (d) and (f), by striking

17 ‘‘dealers’’ each place it appears and inserting

18 ‘‘retailers’’;

19 (4) in section 616 (42 U.S.C. 5415), by striking

20 ‘‘dealer’’ and inserting ‘‘retailer’’; and

21 (5) in section 623(c)(9), by striking ‘‘dealers’’

22 and inserting ‘‘retailers’’.

23 SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUCTION

24 AND SAFETY STANDARDS.

25 Section 604 (42 U.S.C. 5403) is amended—
154

•S 1452 EAH

1 (1) by striking subsections (a) and (b) and in2 serting the following:

3 ‘‘(a) ESTABLISHMENT.—

4 ‘‘(1) AUTHORITY.—The Secretary shall establish,

5 by order, appropriate Federal manufactured home

6 construction and safety standards, each of which—

7 ‘‘(A) shall—

8 ‘‘(i) be reasonable and practical;

9 ‘‘(ii) meet high standards of protection

10 consistent with the purposes of this title;

11 and

12 ‘‘(iii) be performance-based and objec13 tively stated, unless clearly inappropriate;

14 and

15 ‘‘(B) except as provided in subsection (b),

16 shall be established in accordance with the con17 sensus standards development process.

18 ‘‘(2) CONSENSUS STANDARDS AND REGULATORY

19 DEVELOPMENT PROCESS.—

20 ‘‘(A) INITIAL AGREEMENT.—Not later than

21 180 days after the date of enactment of the Man22 ufactured Housing Improvement Act of 2000, the

23 Secretary shall enter into a contract with an ad24 ministering organization. The contractual agree25 ment shall—
155

•S 1452 EAH

1 ‘‘(i) terminate on the date on which a

2 contract is entered into under subparagraph

3 (B); and

4 ‘‘(ii) require the administering organi5 zation to—

6 ‘‘(I) recommend the initial mem7 bers of the consensus committee under

8 paragraph (3);

9 ‘‘(II) administer the consensus

10 standards development process until

11 the termination of that agreement; and

12 ‘‘(III) administer the consensus

13 development and interpretation process

14 for procedural and enforcement regula15 tions and regulations specifying the

16 permissible scope and conduct of moni17 toring until the termination of that

18 agreement.

19 ‘‘(B) COMPETITIVELY PROCURED CON20 TRACT.—Upon the expiration of the 4-year pe21 riod beginning on the date on which all members

22 of the consensus committee are appointed under

23 paragraph (3), the Secretary shall, using com24 petitive procedures (as such term is defined in

25 section 4 of the Office of Federal Procurement
156

•S 1452 EAH

1 Policy Act), enter into a competitively awarded

2 contract with an administering organization.

3 The administering organization shall administer

4 the consensus process for the development and in5 terpretation of the Federal standards, the proce6 dural and enforcement regulations, and regula7 tions specifying the permissible scope and con8 duct of monitoring, in accordance with this title.

9 ‘‘(C) PERFORMANCE REVIEW.—The

10 Secretary—

11 ‘‘(i) shall periodically review the per12 formance of the administering organization;

13 and

14 ‘‘(ii) may replace the administering

15 organization with another qualified tech16 nical or building code organization, pursu17 ant to competitive procedures, if the Sec18 retary determines in writing that the ad19 ministering organization is not fulfilling

20 the terms of the agreement or contract to

21 which the administering organization is

22 subject or upon the expiration of the agree23 ment or contract.

24 ‘‘(3) CONSENSUS COMMITTEE.—
157

•S 1452 EAH

1 ‘‘(A) PURPOSE.—There is established a

2 committee to be known as the ‘consensus com3 mittee’, which shall, in accordance with this

4 title—

5 ‘‘(i) provide periodic recommendations

6 to the Secretary to adopt, revise, and inter7 pret the Federal manufactured housing con8 struction and safety standards in accord9 ance with this subsection;

10 ‘‘(ii) provide periodic recommendations

11 to the Secretary to adopt, revise, and inter12 pret the procedural and enforcement regula13 tions, including regulations specifying the

14 permissible scope and conduct of monitoring

15 in accordance with subsection (b);

16 ‘‘(iii) be organized and carry out its

17 business in a manner that guarantees a fair

18 opportunity for the expression and consider19 ation of various positions and for public

20 participation; and

21 ‘‘(iv) be deemed to be an advisory com22 mittee not composed of Federal employees.

23 ‘‘(B) MEMBERSHIP.—The consensus com24 mittee shall be composed of—
158

•S 1452 EAH

1 ‘‘(i) 21 voting members appointed by

2 the Secretary, after consideration of the rec3 ommendations of the administering organi4 zation, from among individuals who are

5 qualified by background and experience to

6 participate in the work of the consensus

7 committee; and

8 ‘‘(ii) 1 nonvoting member appointed by

9 the Secretary to represent the Secretary on

10 the consensus committee.

11 ‘‘(C) DISAPPROVAL.—The Secretary shall

12 state, in writing, the reasons for failing to ap13 point any individual recommended under para14 graph (2)(A)(ii)(I).

15 ‘‘(D) SELECTION PROCEDURES AND RE16 QUIREMENTS.—Each member of the consensus

17 committee shall be appointed in accordance with

18 selection procedures, which shall be based on the

19 procedures for consensus committees promulgated

20 by the American National Standards Institute

21 (or successor organization), except that the

22 American National Standards Institute interest

23 categories shall be modified for purposes of this

24 paragraph to ensure equal representation on the
159

•S 1452 EAH

1 consensus committee of the following interest cat2 egories:

3 ‘‘(i) PRODUCERS.—Seven producers or

4 retailers of manufactured housing.

5 ‘‘(ii) USERS.—Seven persons rep6 resenting consumer interests, such as con7 sumer organizations, recognized consumer

8 leaders, and owners who are residents of

9 manufactured homes.

10 ‘‘(iii) GENERAL INTEREST AND PUBLIC

11 OFFICIALS.—Seven general interest and

12 public official members.

13 ‘‘(E) BALANCING OF INTERESTS.—

14 ‘‘(i) IN GENERAL.—In order to achieve

15 a proper balance of interests on the con16 sensus committee, the Secretary, in appoint17 ing the members of the consensus

18 committee—

19 ‘‘(I) shall ensure that all directly

20 and materially affected interests have

21 the opportunity for fair and equitable

22 participation without dominance by

23 any single interest; and

24 ‘‘(II) may reject the appointment

25 of any 1 or more individuals in order
160

•S 1452 EAH

1 to ensure that there is not dominance

2 by any single interest.

3 ‘‘(ii) DOMINANCE DEFINED.—In this

4 subparagraph, the term ‘dominance’ means

5 a position or exercise of dominant author6 ity, leadership, or influence by reason of su7 perior leverage, strength, or representation.

8 ‘‘(F) ADDITIONAL QUALIFICATIONS.—

9 ‘‘(i) FINANCIAL INDEPENDENCE.—No

10 individual appointed under subparagraph

11 (D)(ii) shall have, and 3 of the individuals

12 appointed under subparagraph (D)(iii)

13 shall not have—

14 ‘‘(I) a significant financial inter15 est in any segment of the manufac16 tured housing industry; or

17 ‘‘(II) a significant relationship to

18 any person engaged in the manufac19 tured housing industry.

20 ‘‘(ii) POST-EMPLOYMENT BAN.—Each

21 individual described in clause (i) shall be

22 subject to a ban disallowing compensation

23 from the manufactured housing industry

24 during the period of, and during the 1-year
161

•S 1452 EAH

1 following, the membership of the individual

2 on the consensus committee.

3 ‘‘(G) MEETINGS.—

4 ‘‘(i) NOTICE; OPEN TO PUBLIC.—The

5 consensus committee shall provide advance

6 notice of each meeting of the consensus com7 mittee to the Secretary and cause to be pub8 lished in the Federal Register advance no9 tice of each such meeting. All meetings of

10 the consensus committee shall be open to the

11 public.

12 ‘‘(ii) REIMBURSEMENT.—Members of

13 the consensus committee in attendance at

14 meetings of the consensus committee shall be

15 reimbursed for their actual expenses as au16 thorized by section 5703 of title 5, United

17 States Code, for persons employed intermit18 tently in Government service.

19 ‘‘(H) ADMINISTRATION.—The consensus

20 committee and the administering organization

21 shall—

22 ‘‘(i) operate in conformance with the

23 procedures established by the American Na24 tional Standards Institute for the develop-
162

•S 1452 EAH

1 ment and coordination of American Na2 tional Standards; and

3 ‘‘(ii) apply to the American National

4 Standards Institute and take such other ac5 tions as may be necessary to obtain accredi6 tation from the American National Stand7 ards Institute.

8 ‘‘(I) STAFF AND TECHNICAL SUPPORT.—The

9 administering organization shall, upon the re10 quest of the consensus committee—

11 ‘‘(i) provide reasonable staff resources

12 to the consensus committee; and

13 ‘‘(ii) furnish technical support in a

14 timely manner to any of the interest cat15 egories described in subparagraph (D) rep16 resented on the consensus committee, if—

17 ‘‘(I) the support is necessary to

18 ensure the informed participation of

19 the consensus committee members; and

20 ‘‘(II) the costs of providing the

21 support are reasonable.

22 ‘‘(J) DATE OF INITIAL APPOINTMENTS.—

23 The initial appointments of all of the members

24 of the consensus committee shall be completed not

25 later than 90 days after the date on which a con-
163

•S 1452 EAH

1 tractual agreement under paragraph (2)(A) is

2 entered into with the administering organiza3 tion.

4 ‘‘(4) REVISIONS OF STANDARDS.—

5 ‘‘(A) IN GENERAL.—Beginning on the date

6 on which all members of the consensus committee

7 are appointed under paragraph (3), the con8 sensus committee shall, not less than once during

9 each 2-year period—

10 ‘‘(i) consider revisions to the Federal

11 manufactured home construction and safety

12 standards; and

13 ‘‘(ii) submit proposed revised stand14 ards, if approved in a vote of the consensus

committee by 2 15 ⁄3 of the members, to the Sec16 retary in the form of a proposed rule, in17 cluding an economic analysis.

18 ‘‘(B) PUBLICATION OF PROPOSED REVISED

19 STANDARDS.—

20 ‘‘(i) PUBLICATION BY SECRETARY.—

21 The consensus committee shall provide a

22 proposed revised standard under subpara23 graph (A)(ii) to the Secretary who shall, not

24 later than 30 days after receipt, cause such

25 proposed revised standard to be published
164

•S 1452 EAH

1 in the Federal Register for notice and com2 ment in accordance with section 553 of title

3 5, United States Code. Unless clause (ii)

4 applies, the Secretary shall provide an op5 portunity for public comment on such pro6 posed revised standard in accordance with

7 such section 553 and any such comments

8 shall be submitted directly to the consensus

9 committee, without delay.

10 ‘‘(ii) PUBLICATION OF REJECTED PRO11 POSED REVISED STANDARDS.—If the Sec12 retary rejects the proposed revised standard,

13 the Secretary shall cause to be published in

14 the Federal Register the rejected proposed

15 revised standard, the reasons for rejection,

16 and any recommended modifications set

17 forth.

18 ‘‘(C) PRESENTATION OF PUBLIC COMMENTS;

19 PUBLICATION OF RECOMMENDED REVISIONS.—

20 ‘‘(i) PRESENTATION.—Any public com21 ments, views, and objections to a proposed

22 revised standard published under subpara23 graph (B) shall be presented by the Sec24 retary to the consensus committee upon

25 their receipt and in the manner received, in
165

•S 1452 EAH

1 accordance with procedures established by

2 the American National Standards Institute.

3 ‘‘(ii) PUBLICATION BY THE SEC4 RETARY.—The consensus committee shall

5 provide to the Secretary any revision pro6 posed by the consensus committee, which the

7 Secretary shall, not later than 30 calendar

8 days after receipt, cause to be published in

9 the Federal Register a notice of the rec10 ommended revisions of the consensus com11 mittee to the standards, a notice of the sub12 mission of the recommended revisions to the

13 Secretary, and a description of the cir14 cumstances under which the proposed re15 vised standards could become effective.

16 ‘‘(iii) PUBLICATION OF REJECTED PRO17 POSED REVISED STANDARDS.—If the Sec18 retary rejects the proposed revised standard,

19 the Secretary shall cause to be published in

20 the Federal Register the rejected proposed

21 revised standard, the reasons for rejection,

22 and any recommended modifications set

23 forth.

24 ‘‘(5) REVIEW BY THE SECRETARY.—
166

•S 1452 EAH

1 ‘‘(A) IN GENERAL.—The Secretary shall ei2 ther adopt, modify, or reject a standard, as sub3 mitted by the consensus committee under para4 graph (4)(A).

5 ‘‘(B) TIMING.—Not later than 12 months

6 after the date on which a standard is submitted

7 to the Secretary by the consensus committee, the

8 Secretary shall take action regarding such stand9 ard under subparagraph (C).

10 ‘‘(C) PROCEDURES.—If the Secretary—

11 ‘‘(i) adopts a standard recommended

12 by the consensus committee, the Secretary

13 shall—

14 ‘‘(I) issue a final order without

15 further rulemaking; and

16 ‘‘(II) cause the final order to be

17 published in the Federal Register;

18 ‘‘(ii) determines that any standard

19 should be rejected, the Secretary shall—

20 ‘‘(I) reject the standard; and

21 ‘‘(II) cause to be published in the

22 Federal Register a notice to that effect,

23 together with the reason or reasons for

24 rejecting the proposed standard; or
167

•S 1452 EAH

1 ‘‘(iii) determines that a standard rec2 ommended by the consensus committee

3 should be modified, the Secretary shall—

4 ‘‘(I) cause to be published in the

5 Federal Register the proposed modified

6 standard, together with an explanation

7 of the reason or reasons for the deter8 mination of the Secretary; and

9 ‘‘(II) provide an opportunity for

10 public comment in accordance with

11 section 553 of title 5, United States

12 Code.

13 ‘‘(D) FINAL ORDER.—Any final standard

14 under this paragraph shall become effective pur15 suant to subsection (c).

16 ‘‘(6) FAILURE TO ACT.—If the Secretary fails to

17 take final action under paragraph (5) and to cause

18 notice of the action to be published in the Federal

19 Register before the expiration of the 12-month period

20 beginning on the date on which the proposed revised

21 standard is submitted to the Secretary under para22 graph (4)(A)—

23 ‘‘(A) the Secretary shall appear in person

24 before the appropriate housing and appropria25 tions subcommittees and committees of the House
168

•S 1452 EAH

1 of Representatives and the Senate (referred to in

2 this paragraph as the ‘committees’) on a date or

3 dates to be specified by the committees, but in no

4 event later than 30 days after the expiration of

5 that 12-month period, and shall state before the

6 committees the reasons for failing to take final

7 action as required under paragraph (5); and

8 ‘‘(B) if the Secretary does not appear in

9 person as required under subparagraph (A), the

10 Secretary shall thereafter, and until such time as

11 the Secretary does appear as required under sub12 paragraph (A), be prohibited from expending

13 any funds collected under authority of this title

14 in an amount greater than that collected and ex15 pended in the fiscal year immediately preceding

16 the date of enactment of the Manufactured Hous17 ing Improvement Act of 2000, indexed for infla18 tion as determined by the Congressional Budget

19 Office.

20 ‘‘(b) OTHER ORDERS.—

21 ‘‘(1) REGULATIONS.—The Secretary may issue

22 procedural and enforcement regulations and revisions

23 to existing regulations as necessary to implement the

24 provisions of this title. The consensus committee may

25 submit to the Secretary proposed procedural and en-
169

•S 1452 EAH

1 forcement regulations and recommendations for the

2 revision of such regulations.

3 ‘‘(2) INTERPRETATIVE BULLETINS.—The Sec4 retary may issue interpretative bulletins to clarify the

5 meaning of any Federal manufactured home construc6 tion and safety standard or procedural and enforce7 ment regulation. The consensus committee may sub8 mit to the Secretary proposed interpretative bulletins

9 to clarify the meaning of any Federal manufactured

10 home construction and safety standard or procedural

11 and enforcement regulation.

12 ‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be13 fore issuing a procedural or enforcement regulation or

14 an interpretative bulletin—

15 ‘‘(A) the Secretary shall—

16 ‘‘(i) submit the proposed procedural or

17 enforcement regulation or interpretative

18 bulletin to the consensus committee; and

19 ‘‘(ii) provide the consensus committee

20 with a period of 120 days to submit written

21 comments to the Secretary on the proposed

22 procedural or enforcement regulation or the

23 interpretative bulletin; and

24 ‘‘(B) if the Secretary rejects any significant

25 comment provided by the consensus committee
170

•S 1452 EAH

1 under subparagraph (A), the Secretary shall pro2 vide a written explanation of the reasons for the

3 rejection to the consensus committee; and

4 ‘‘(C) following compliance with subpara5 graphs (A) and (B), the Secretary shall—

6 ‘‘(i) cause the proposed regulation or

7 interpretative bulletin and the consensus

8 committee’s written comments, along with

9 the Secretary’s response thereto, to be pub10 lished in the Federal Register; and

11 ‘‘(ii) provide an opportunity for public

12 comment in accordance with section 553 of

13 title 5, United States Code.

14 ‘‘(4) REQUIRED ACTION.—Not later than 120

15 days after the date on which the Secretary receives a

16 proposed regulation or interpretative bulletin sub17 mitted by the consensus committee, the Secretary

18 shall—

19 ‘‘(A) approve the proposal and cause the

20 proposed regulation or interpretative bulletin to

21 be published for public comment in accordance

22 with section 553 of title 5, United States Code;

23 or

24 ‘‘(B) reject the proposed regulation or inter25 pretative bulletin and—
171

•S 1452 EAH

1 ‘‘(i) provide to the consensus committee

2 a written explanation of the reasons for re3 jection; and

4 ‘‘(ii) cause to be published in the Fed5 eral Register the rejected proposed regula6 tion or interpretive bulletin, the reasons for

7 rejection, and any recommended modifica8 tions set forth.

9 ‘‘(5) AUTHORITY TO ACT AND EMERGENCY.—If

10 the Secretary determines, in writing, that such action

11 is necessary to address an issue on which the Sec12 retary determines that the consensus committee has

13 not made a timely recommendation following a re14 quest by the Secretary, or in order to respond to an

15 emergency that jeopardizes the public health or safety,

16 the Secretary may issue an order that is not devel17 oped under the procedures set forth in subsection (a)

18 or in this subsection, if the Secretary—

19 ‘‘(A) provides to the consensus committee a

20 written description and sets forth the reasons

21 why action is necessary and all supporting docu22 mentation; and

23 ‘‘(B) issues the order after notice and an

24 opportunity for public comment in accordance

25 with section 553 of title 5, United States Code,
172

•S 1452 EAH

1 and causes the order to be published in the Fed2 eral Register.

3 ‘‘(6) CHANGES.—Any statement of policies, prac4 tices, or procedures relating to construction and safety

5 standards, regulations, inspections, monitoring, or

6 other enforcement activities that constitutes a state7 ment of general or particular applicability to imple8 ment, interpret, or prescribe law or policy by the Sec9 retary is subject to subsection (a) or this subsection.

10 Any change adopted in violation of subsection (a) or

11 this subsection is void.

12 ‘‘(7) TRANSITION.—Until the date on which the

13 consensus committee is appointed pursuant to section

14 604(a)(3), the Secretary may issue proposed orders,

15 pursuant to notice and comment in accordance with

16 section 553 of title 5, United States Code, that are not

17 developed under the procedures set forth in this sec18 tion for new and revised standards.’’;

19 (2) in subsection (d), by adding at the end the

20 following: ‘‘Federal preemption under this subsection

21 shall be broadly and liberally construed to ensure that

22 disparate State or local requirements or standards do

23 not affect the uniformity and comprehensiveness of the

24 standards promulgated under this section nor the

25 Federal superintendence of the manufactured housing
173

•S 1452 EAH

1 industry as established by this title. Subject to section

2 605, there is reserved to each State the right to estab3 lish standards for the stabilizing and support systems

4 of manufactured homes sited within that State, and

5 for the foundations on which manufactured homes

6 sited within that State are installed, and the right to

7 enforce compliance with such standards, except that

8 such standards shall be consistent with the purposes

9 of this title and shall be consistent with the design of

10 the manufacturer.’’;

11 (3) by striking subsection (e);

12 (4) in subsection (f), by striking the subsection

13 designation and all of the matter that precedes para14 graph (1) and inserting the following:

15 ‘‘(e) CONSIDERATIONS IN ESTABLISHING AND INTER16 PRETING STANDARDS AND REGULATIONS.—The consensus

17 committee, in recommending standards, regulations, and

18 interpretations, and the Secretary, in establishing stand19 ards or regulations or issuing interpretations under this

20 section, shall—’’;

21 (5) by striking subsection (g);

22 (6) in the first sentence of subsection (j), by

23 striking ‘‘subsection (f)’’ and inserting ‘‘subsection

24 (e)’’; and
174

•S 1452 EAH

1 (7) by redesignating subsections (h), (i), and (j),

2 as subsections (f), (g), and (h), respectively.

3 SEC. 605. ABOLISHMENT OF NATIONAL MANUFACTURED

4 HOME ADVISORY COUNCIL; MANUFACTURED

5 HOME INSTALLATION.

6 (a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is

7 amended to read as follows:

8 ‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

9 ‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN10 STRUCTIONS.—A manufacturer shall provide with each

11 manufactured home, design and instructions for the instal12 lation of the manufactured home that have been approved

13 by a design approval primary inspection agency. After es14 tablishment of model standards under subsection (b)(2), a

15 design approval primary inspection agency may not give

16 such approval unless a design and instruction provides

17 equal or greater protection than the protection provided

18 under such model standards.

19 ‘‘(b) MODEL MANUFACTURED HOME INSTALLATION

20 STANDARDS.—

21 ‘‘(1) PROPOSED MODEL STANDARDS.—Not later

22 than 18 months after the date on which the initial

23 appointments of all of the members of the consensus

24 committee are completed, the consensus committee

25 shall develop and submit to the Secretary proposed
175

•S 1452 EAH

1 model manufactured home installation standards,

2 which shall, to the maximum extent practicable, tak3 ing into account the factors described in section

4 604(e), be consistent with—

5 ‘‘(A) the manufactured home designs that

6 have been approved by a design approval pri7 mary inspection agency; and

8 ‘‘(B) the designs and instructions for the in9 stallation of manufactured homes provided by

10 manufacturers under subsection (a).

11 ‘‘(2) ESTABLISHMENT OF MODEL STANDARDS.—

12 Not later than 12 months after receiving the proposed

13 model standards submitted under paragraph (1), the

14 Secretary shall develop and establish model manufac15 tured home installation standards, which shall, to the

16 maximum extent practicable, taking into account the

17 factors described in section 604(e), be consistent

18 with—

19 ‘‘(A) the manufactured home designs that

20 have been approved by a design approval pri21 mary inspection agency; and

22 ‘‘(B) the designs and instructions for the in23 stallation of manufactured homes provided by

24 manufacturers under subsection (a).

25 ‘‘(3) FACTORS FOR CONSIDERATION.—
176

•S 1452 EAH

1 ‘‘(A) CONSENSUS COMMITTEE.—In devel2 oping the proposed model standards under para3 graph (1), the consensus committee shall consider

4 the factors described in section 604(e).

5 ‘‘(B) SECRETARY.—In developing and es6 tablishing the model standards under paragraph

7 (2), the Secretary shall consider the factors de8 scribed in section 604(e).

9 ‘‘(4) ISSUANCE.—The model manufactured home

10 installation standards shall be issued after notice and

11 an opportunity for public comment in accordance

12 with section 553 of title 5, United States Code.

13 ‘‘(c) MANUFACTURED HOME INSTALLATION PRO14 GRAMS.—

15 ‘‘(1) PROTECTION OF MANUFACTURED HOUSING

16 RESIDENTS DURING INITIAL PERIOD.—During the 5-

17 year period beginning on the date of enactment of the

18 Manufactured Housing Improvement Act of 2000, no

19 State or manufacturer may establish or implement

20 any installation standards that, in the determination

21 of the Secretary, provide less protection to the resi22 dents of manufactured homes than the protection pro23 vided by the installation standards in effect with re24 spect to the State or manufacturer, as applicable, on
177

•S 1452 EAH

1 the date of enactment of the Manufactured Housing

2 Improvement Act of 2000.

3 ‘‘(2) INSTALLATION STANDARDS.—

4 ‘‘(A) ESTABLISHMENT OF INSTALLATION

5 PROGRAM.—Not later than the expiration of the

6 5-year period described in paragraph (1), the

7 Secretary shall establish an installation program

8 that meets the requirements of paragraph (3) for

9 the enforcement of installation standards in each

10 State described in subparagraph (B) of this

11 paragraph.

12 ‘‘(B) IMPLEMENTATION OF INSTALLATION

13 PROGRAM.—Beginning on the expiration of the

14 5-year period described in paragraph (1), the

15 Secretary shall implement the installation pro16 gram established under subparagraph (A) in

17 each State that does not have an installation

18 program established by State law that meets the

19 requirements of paragraph (3).

20 ‘‘(C) CONTRACTING OUT OF IMPLEMENTA21 TION.—In carrying out subparagraph (B), the

22 Secretary may contract with an appropriate

23 agent to implement the installation program es24 tablished under that subparagraph, except that

25 such agent shall not be a person or entity other
178

•S 1452 EAH

1 than a government, nor an affiliate or sub2 sidiary of such a person or entity, that has en3 tered into a contract with the Secretary to im4 plement any other regulatory program under

5 this title.

6 ‘‘(3) REQUIREMENTS.—An installation program

7 meets the requirements of this paragraph if it is a

8 program regulating the installation of manufactured

9 homes that includes—

10 ‘‘(A) installation standards that, in the de11 termination of the Secretary, provide protection

12 to the residents of manufactured homes that

13 equals or exceeds the protection provided to those

14 residents by—

15 ‘‘(i) the model manufactured home in16 stallation standards established by the Sec17 retary under subsection (b)(2); or

18 ‘‘(ii) the designs and instructions pro19 vided by manufacturers under subsection

20 (a), if the Secretary determines that such

21 designs and instructions provide protection

22 to the residents of manufactured homes that

23 equals or exceeds the protection provided by

24 the model manufactured home installation
179

•S 1452 EAH

1 standards established by the Secretary

2 under subsection (b)(2);

3 ‘‘(B) the training and licensing of manufac4 tured home installers; and

5 ‘‘(C) inspection of the installation of manu6 factured homes.’’.

7 (b) CONFORMING AMENDMENTS.—Section 623(c) (42

8 U.S.C. 5422(c)) is amended—

9 (1) in paragraph (10), by striking ‘‘and’’ at the

10 end;

11 (2) by redesignating paragraph (11) as para12 graph (13); and

13 (3) by inserting after paragraph (10) the fol14 lowing:

15 ‘‘(11) with respect to any State plan submitted

16 on or after the expiration of the 5-year period begin17 ning on the date of enactment of the Manufactured

18 Housing Improvement Act of 2000, provides for an

19 installation program established by State law that

20 meets the requirements of section 605(c)(3);’’.

21 SEC. 606. PUBLIC INFORMATION.

22 Section 607 (42 U.S.C. 5406) is amended—

23 (1) in subsection (a)—

24 (A) by inserting ‘‘to the Secretary’’ after

25 ‘‘submit’’; and
180

•S 1452 EAH

1 (B) by adding at the end the following:

2 ‘‘The Secretary shall submit such cost and other

3 information to the consensus committee for eval4 uation.’’;

5 (2) in subsection (d), by inserting ‘‘, the con6 sensus committee,’’ after ‘‘public’’; and

7 (3) by striking subsection (c) and redesignating

8 subsections (d) and (e) as subsections (c) and (d), re9 spectively.

10 SEC. 607. RESEARCH, TESTING, DEVELOPMENT, AND TRAIN11 ING.

12 (a) IN GENERAL.—Section 608(a) (42 U.S.C. 5407(a))

13 is amended—

14 (1) in paragraph (2), by striking ‘‘and’’ at the

15 end;

16 (2) in paragraph (3), by striking the period at

17 the end and inserting a semicolon; and

18 (3) by adding at the end the following:

19 ‘‘(4) encouraging the government-sponsored hous20 ing entities to actively develop and implement sec21 ondary market securitization programs for the FHA

22 manufactured home loans and those of other loan pro23 grams, as appropriate, thereby promoting the avail24 ability of affordable manufactured homes to increase
181

•S 1452 EAH

1 homeownership for all people in the United States;

2 and

3 ‘‘(5) reviewing the programs for FHA manufac4 tured home loans and developing any changes to such

5 programs to promote the affordability of manufac6 tured homes, including changes in loan terms, amor7 tization periods, regulations, and procedures.’’.

8 (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is

9 amended by adding at the end the following:

10 ‘‘(c) DEFINITIONS.—For purposes of this section, the

11 following definitions shall apply:

12 ‘‘(1) GOVERNMENT-SPONSORED HOUSING ENTI13 TIES.—The term ‘government-sponsored housing enti14 ties’ means the Government National Mortgage Asso15 ciation of the Department of Housing and Urban De16 velopment, the Federal National Mortgage Associa17 tion, and the Federal Home Loan Mortgage Corpora18 tion.

19 ‘‘(2) FHA MANUFACTURED HOME LOAN.—The

20 term ‘FHA manufactured home loan’ means a loan

21 that—

22 ‘‘(A) is insured under title I of the National

23 Housing Act and is made for the purpose of fi24 nancing alterations, repairs, or improvements on

25 or in connection with an existing manufactured
182

•S 1452 EAH

1 home, the purchase of a manufactured home, the

2 purchase of a manufactured home and a lot on

3 which to place the home, or the purchase only of

4 a lot on which to place a manufactured home; or

5 ‘‘(B) is otherwise insured under the Na6 tional Housing Act and made for or in connec7 tion with a manufactured home.’’.

8 SEC. 608. PROHIBITED ACTS.

9 Section 610(a) (42 U.S.C. 5409(a)) is amended—

10 (1) in paragraph (5), by striking ‘‘or’’ at the

11 end;

12 (2) in paragraph (6), by striking the period at

13 the end and inserting ‘‘; or’’; and

14 (3) by adding at the end the following new para15 graph:

16 ‘‘(7) after the expiration of the period specified

17 in section 605(c)(2)(B), fail to comply with the re18 quirements for the installation program required by

19 section 605 in any State that has not adopted and

20 implemented a State installation program.’’.

21 SEC. 609. FEES.

22 Section 620 (42 U.S.C. 5419) is amended to read as

23 follows:
183

•S 1452 EAH

1 ‘‘SEC. 620. AUTHORITY TO COLLECT FEE.

2 ‘‘(a) IN GENERAL.—In carrying out inspections under

3 this title, in developing standards and regulations pursuant

4 to section 604, and in facilitating the acceptance of the af5 fordability and availability of manufactured housing with6 in the Department, the Secretary may—

7 ‘‘(1) establish and collect from manufactured

8 home manufacturers a reasonable fee, as may be nec9 essary to offset the expenses incurred by the Secretary

10 in connection with carrying out the responsibilities of

11 the Secretary under this title, including—

12 ‘‘(A) conducting inspections and moni13 toring;

14 ‘‘(B) providing funding to States for the ad15 ministration and implementation of approved

16 State plans under section 623, including reason17 able funding for cooperative educational and

18 training programs designed to facilitate uniform

19 enforcement under this title, which funds may be

20 paid directly to the States or may be paid or

21 provided to any person or entity designated to

22 receive and disburse such funds by cooperative

23 agreements among participating States, provided

24 that such person or entity is not otherwise an

25 agent of the Secretary under this title;
184

•S 1452 EAH

1 ‘‘(C) providing the funding for a noncareer

2 administrator within the Department to admin3 ister the manufactured housing program;

4 ‘‘(D) providing the funding for salaries and

5 expenses of employees of the Department to carry

6 out the manufactured housing program;

7 ‘‘(E) administering the consensus committee

8 as set forth in section 604;

9 ‘‘(F) facilitating the acceptance of the qual10 ity, durability, safety, and affordability of man11 ufactured housing within the Department; and

12 ‘‘(G) the administration and enforcement of

13 the installation standards authorized by section

14 605 in States in which the Secretary is required

15 to implement an installation program after the

16 expiration of the 5-year period set forth in sec17 tion 605(c)(2)(B), and the administration and

18 enforcement of a dispute resolution program de19 scribed in section 623(c)(12) in States in which

20 the Secretary is required to implement such a

21 program after the expiration of the 5-year period

22 set forth in section 623(g)(2); and

23 ‘‘(2) subject to subsection (e), use amounts from

24 any fee collected under paragraph (1) of this sub25 section to pay expenses referred to in that paragraph,
185

•S 1452 EAH

1 which shall be exempt and separate from any limita2 tions on the Department regarding full-time equiva3 lent positions and travel.

4 ‘‘(b) CONTRACTORS.—In using amounts from any fee

5 collected under this section, the Secretary shall ensure that

6 separate and independent contractors are retained to carry

7 out monitoring and inspection work and any other work

8 that may be delegated to a contractor under this title.

9 ‘‘(c) PROHIBITED USE.—No amount from any fee col10 lected under this section may be used for any purpose or

11 activity not specifically authorized by this title, unless such

12 activity was already engaged in by the Secretary prior to

13 the date of enactment of the Manufactured Housing Im14 provement Act of 2000.

15 ‘‘(d) MODIFICATION.—Beginning on the date of enact16 ment of the Manufactured Housing Improvement Act of

17 2000, the amount of any fee collected under this section may

18 only be modified—

19 ‘‘(1) as specifically authorized in advance in an

20 annual appropriations Act; and

21 ‘‘(2) pursuant to rulemaking in accordance with

22 section 553 of title 5, United States Code.

23 ‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

24 ‘‘(1) IN GENERAL.—There is established in the

25 Treasury of the United States a fund to be known as
186

•S 1452 EAH

1 the ‘Manufactured Housing Fees Trust Fund’ for de2 posit of amounts from any fee collected under this sec3 tion. Such amounts shall be held in trust for use only

4 as provided in this title.

5 ‘‘(2) APPROPRIATION.—Amounts from any fee

6 collected under this section shall be available for ex7 penditure only to the extent approved in advance in

8 an annual appropriations Act. Any change in the ex9 penditure of such amounts shall be specifically au10 thorized in advance in an annual appropriations Act.

11 ‘‘(3) PAYMENTS TO STATES.—On and after the

12 effective date of the Manufactured Housing Improve13 ment Act of 2000, the Secretary shall continue to fund

14 the States having approved State plans in the

15 amounts which are not less than the allocated

16 amounts, based on the fee distribution system in effect

17 on the day before such effective date.’’.

18 SEC. 610. DISPUTE RESOLUTION.

19 Section 623(c) (42 U.S.C. 5422(c)) is amended—

20 (1) by inserting after paragraph (11) (as added

21 by the preceding provisions of this title) the following:

22 ‘‘(12) with respect to any State plan submitted

23 on or after the expiration of the 5-year period begin24 ning on the date of enactment of the Manufactured

25 Housing Improvement Act of 2000, provides for a dis-
187

•S 1452 EAH

1 pute resolution program for the timely resolution of

2 disputes between manufacturers, retailers, and install3 ers of manufactured homes regarding responsibility,

4 and for the issuance of appropriate orders, for the

5 correction or repair of defects in manufactured homes

6 that are reported during the 1-year period beginning

7 on the date of installation; and’’; and

8 (2) by adding at the end the following:

9 ‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION STAND10 ARDS.—

11 ‘‘(1) ESTABLISHMENT OF DISPUTE RESOLUTION

12 PROGRAM.—Not later than the expiration of the 5-

13 year period beginning on the date of enactment of the

14 Manufactured Housing Improvement Act of 2000, the

15 Secretary shall establish a dispute resolution program

16 that meets the requirements of subsection (c)(12) for

17 dispute resolution in each State described in para18 graph (2) of this subsection. The order establishing the

19 dispute resolution program shall be issued after notice

20 and opportunity for public comment in accordance

21 with section 553 of title 5, United States Code.

22 ‘‘(2) IMPLEMENTATION OF DISPUTE RESOLUTION

23 PROGRAM.—Beginning on the expiration of the 5-year

24 period described in paragraph (1), the Secretary shall

25 implement the dispute resolution program established
188

•S 1452 EAH

1 under paragraph (1) in each State that has not estab2 lished a dispute resolution program that meets the re3 quirements of subsection (c)(12).

4 ‘‘(3) CONTRACTING OUT OF IMPLEMENTATION.—

5 In carrying out paragraph (2), the Secretary may

6 contract with an appropriate agent to implement the

7 dispute resolution program established under para8 graph (2), except that such agent shall not be a per9 son or entity other than a government, nor an affil10 iate or subsidiary of such a person or entity, that has

11 entered into a contract with the Secretary to imple12 ment any other regulatory program under this title.’’.

13 SEC. 611. ELIMINATION OF ANNUAL REPORTING REQUIRE14 MENT.

15 The National Manufactured Housing Construction

16 and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.)

17 is amended—

18 (1) by striking section 626 (42 U.S.C. 5425);

19 and

20 (2) by redesignating sections 627 and 628 (42

21 U.S.C. 5426, 5401 note) as sections 626 and 627, re22 spectively.

23 SEC. 612. EFFECTIVE DATE.

24 The amendments made by this title shall take effect

25 on the date of enactment of this Act, except that the amend-
189

•S 1452 EAH

1 ments shall have no effect on any order or interpretative

2 bulletin that is issued under the National Manufactured

3 Housing Construction and Safety Standards Act of 1974

4 (42 U.S.C. 5401 et seq.) and published as a proposed rule

5 pursuant to section 553 of title 5, United States Code, on

6 or before that date of enactment.

7 SEC. 613. SAVINGS PROVISIONS.

8 (a) STANDARDS AND REGULATIONS.—The Federal

9 manufactured home construction and safety standards (as

10 such term is defined in section 603 of the National Manu11 factured Housing Construction and Safety Standards Act

12 of 1974) and all regulations pertaining thereto in effect on

13 the day before the date of enactment of this Act shall apply

14 until the effective date of a standard or regulation modi15 fying or superseding the existing standard or regulation

16 that is promulgated under subsection (a) or (b) of section

17 604 of the National Manufactured Housing Construction

18 and Safety Standards Act of 1974, as amended by this title.

19 (b) CONTRACTS.—Any contract awarded pursuant to

20 a Request for Proposal issued before the date of enactment

21 of this Act shall remain in effect until the earlier of—

22 (1) the expiration of the 2-year period beginning

23 on the date of enactment of this Act; or

24 (2) the expiration of the contract term.
190

•S 1452 EAH

1 TITLE VII—RURAL HOUSING

2 HOMEOWNERSHIP.

3 SEC. 701. GUARANTEES FOR REFINANCING OF RURAL

4 HOUSING LOANS.

5 Section 502(h) of the Housing Act of 1949 (42 U.S.C.

6 1472(h)) is amended by adding at the end the following new

7 paragraph:

8 ‘‘(13) GUARANTEES FOR REFINANCING LOANS.—

9 ‘‘(A) IN GENERAL.—Upon the request of the

10 borrower, the Secretary shall, to the extent pro11 vided in appropriation Acts and subject to sub12 paragraph (F), guarantee a loan that is made to

13 refinance an existing loan that is made under

14 this section or guaranteed under this subsection,

15 and that the Secretary determines complies with

16 the requirements of this paragraph.

17 ‘‘(B) INTEREST RATE.—To be eligible for a

18 guarantee under this paragraph, the refinancing

19 loan shall have a rate of interest that is fixed

20 over the term of the loan and does not exceed the

21 interest rate of the loan being refinanced.

22 ‘‘(C) SECURITY.—To be eligible for a guar23 antee under this paragraph, the refinancing loan

24 shall be secured by the same single-family resi25 dence as was the loan being refinanced, which
191

•S 1452 EAH

1 shall be owned by the borrower and occupied by

2 the borrower as the principal residence of the

3 borrower.

4 ‘‘(D) AMOUNT.—To be eligible for a guar5 antee under this paragraph, the principal obli6 gation under the refinancing loan shall not ex7 ceed an amount equal to the sum of the balance

8 of the loan being refinanced and such closing

9 costs as may be authorized by the Secretary,

10 which shall include a discount not exceeding 2

11 basis points and an origination fee not exceeding

12 such amount as the Secretary shall prescribe.

13 ‘‘(E) OTHER REQUIREMENTS.—The provi14 sions of the last sentence of paragraph (1) and

15 paragraphs (2), (5), (6)(A), (7), and (9) shall

16 apply to loans guaranteed under this paragraph,

17 and no other provisions of paragraphs (1)

18 through (12) shall apply to such loans.

19 ‘‘(F) AUTHORITY TO ESTABLISH LIMITA20 TION.—The Secretary may establish limitations

21 on the number of loans guaranteed under this

22 paragraph, which shall be based on market con23 ditions and other factors as the Secretary con24 siders appropriate.’’.
192

•S 1452 EAH

1 SEC. 702. PROMISSORY NOTE REQUIREMENT UNDER HOUS2 ING REPAIR LOAN PROGRAM.

3 The fourth sentence of section 504(a) of the Housing

4 Act of 1949 (42 U.S.C. 1474(a)) is amended by striking

5 ‘‘$2,500’’ and inserting ‘‘$7,500’’.

6 SEC. 703. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM

7 LABOR HOUSING LOANS.

8 The first sentence of section 514(a) of the Housing Act

9 of 1949 (42 U.S.C. 1484(a)) is amended by striking ‘‘non10 profit limited partnership’’ and inserting ‘‘limited partner11 ship’’.

12 SEC. 704. PROJECT ACCOUNTING RECORDS AND PRAC13 TICES.

14 Section 515 of the Housing Act of 1949 (42 U.S.C.

15 1485) is amended by striking subsection (z) and inserting

16 the following new subsections:

17 ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE18 MENTS.—

19 ‘‘(1) ACCOUNTING STANDARDS.—The Secretary

20 shall require that borrowers in programs authorized

21 by this section maintain accounting records in ac22 cordance with generally accepted accounting prin23 ciples for all projects that receive funds from loans

24 made or guaranteed by the Secretary under this sec25 tion.
193

•S 1452 EAH

1 ‘‘(2) RECORD RETENTION REQUIREMENTS.—The

2 Secretary shall require that borrowers in programs

3 authorized by this section retain for a period of not

4 less than 6 years and make available to the Secretary

5 in a manner determined by the Secretary, all records

6 required to be maintained under this subsection and

7 other records identified by the Secretary in applicable

8 regulations.

9 ‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE OF

10 HOUSING PROJECTS ASSETS AND INCOME.—

11 ‘‘(1) ACTION TO RECOVER ASSETS OR INCOME.—

12 ‘‘(A) IN GENERAL.—The Secretary may re13 quest the Attorney General to bring an action in

14 a United States district court to recover any as15 sets or income used by any person in violation

16 of the provisions of a loan made or guaranteed

17 by the Secretary under this section or in viola18 tion of any applicable statute or regulation.

19 ‘‘(B) IMPROPER DOCUMENTATION.—For

20 purposes of this subsection, a use of assets or in21 come in violation of the applicable loan, loan

22 guarantee, statute, or regulation shall include

23 any use for which the documentation in the

24 books and accounts does not establish that the use

25 was made for a reasonable operating expense or
194

•S 1452 EAH

1 necessary repair of the project or for which the

2 documentation has not been maintained in ac3 cordance with the requirements of the Secretary

4 and in reasonable condition for proper audit.

5 ‘‘(C) DEFINITION.—For the purposes of this

6 subsection, the term ‘person’ means—

7 ‘‘(i) any individual or entity that bor8 rows funds in accordance with programs

9 authorized by this section;

10 ‘‘(ii) any individual or entity holding

11 25 percent or more interest of any entity

12 that borrows funds in accordance with pro13 grams authorized by this section; and

14 ‘‘(iii) any officer, director, or partner

15 of an entity that borrows funds in accord16 ance with programs authorized by this sec17 tion.

18 ‘‘(2) AMOUNT RECOVERABLE.—

19 ‘‘(A) IN GENERAL.—In any judgment favor20 able to the United States entered under this sub21 section, the Attorney General may recover double

22 the value of the assets and income of the project

23 that the court determines to have been used in

24 violation of the provisions of a loan made or

25 guaranteed by the Secretary under this section or
195

•S 1452 EAH

1 any applicable statute or regulation, plus all

2 costs related to the action, including reasonable

3 attorney and auditing fees.

4 ‘‘(B) APPLICATION OF RECOVERED

5 FUNDS.—Notwithstanding any other provision of

6 law, the Secretary may use amounts recovered

7 under this subsection for activities authorized

8 under this section and such funds shall remain

9 available for such use until expended.

10 ‘‘(3) TIME LIMITATION.—Notwithstanding any

11 other provision of law, an action under this sub12 section may be commenced at any time during the 6-

13 year period beginning on the date that the Secretary

14 discovered or should have discovered the violation of

15 the provisions of this section or any related statutes

16 or regulations.

17 ‘‘(4) CONTINUED AVAILABILITY OF OTHER REM18 EDIES.—The remedy provided in this subsection is in

19 addition to and not in substitution of any other rem20 edies available to the Secretary or the United

21 States.’’.

22 SEC. 705. DEFINITION OF RURAL AREA.

23 The second sentence of section 520 of the Housing Act

24 of 1949 (42 U.S.C. 1490) is amended—
196

•S 1452 EAH

1 (1) by striking ‘‘1990 decennial census’’ and in2 serting ‘‘1990 or 2000 decennial census’’; and

3 (2) by striking ‘‘year 2000’’ and inserting ‘‘year

4 2010’’.

5 SEC. 706. OPERATING ASSISTANCE FOR MIGRANT FARM6 WORKERS PROJECTS.

7 The last sentence of section 521(a)(5)(A) of the Hous8 ing Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by

9 striking ‘‘project’’ and inserting ‘‘tenant or unit’’.

10 SEC. 707. MULTIFAMILY RENTAL HOUSING LOAN GUAR11 ANTEE PROGRAM.

12 Section 538 of the Housing Act of 1949 (42 U.S.C.

13 1490p–2) is amended—

14 (1) in subsection (c), by inserting ‘‘an Indian

15 tribe,’’ after ‘‘thereof,’’;

16 (2) in subsection (f), by striking paragraph (1)

17 and inserting the following new paragraph:

18 ‘‘(1) be made for a period of not less than 25 nor

19 greater than 40 years from the date the loan was

20 made and may provide for amortization of the loan

21 over a period of not to exceed 40 years with a final

22 payment of the balance due at the end of the loan

23 term;’’;

24 (3) in subsection (i)(2), by striking ‘‘(A) convey25 ance to the Secretary’’ and all that follows through
197

•S 1452 EAH

1 ‘‘(C) assignment’’ and inserting ‘‘(A) submission to

2 the Secretary of a claim for payment under the guar3 antee, and (B) assignment’’;

4 (4) in subsection (s), by adding at the end the

5 following new subsection:

6 ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’

7 means—

8 ‘‘(A) any Indian tribe, band, nation, or

9 other organized group or community of Indians,

10 including any Alaska Native village or regional

11 or village corporation, as defined by or estab12 lished pursuant to the Alaska Native Claims Set13 tlement Act (43 U.S.C. 1601 et seq.), that is rec14 ognized as eligible for the special programs and

15 services provided by the United States to Indians

16 because of their status as Indians pursuant to

17 the Indian Self-Determination and Education

18 Assistance Act of 1975 (25 U.S.C. 450 et seq.);

19 or

20 ‘‘(B) any entity established by the governing

21 body of an Indian tribe described in subpara22 graph (A) for the purpose of financing economic

23 development.’’;

24 (5) in subsection (t), by inserting before the pe25 riod at the end the following: ‘‘to provide guarantees
198

•S 1452 EAH

1 under this section for eligible loans having an aggre2 gate principal amount of $500,000,000’’;

3 (6) by striking subsection (l);

4 (7) by redesignating subsections (m) through (u)

5 as subsections (l) through (t), respectively; and

6 (8) by adding at the end the following new sub7 sections:

8 ‘‘(u) FEE AUTHORITY.—Any amounts collected by the

9 Secretary pursuant to the fees charged to lenders for loan

10 guarantees issued under this section shall be used to offset

11 costs (as defined by section 502 of the Congressional Budget

12 Act of 1974 (2 U.S.C. 661a)) of loan guarantees made under

13 this section.

14 ‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVATION

15 LANDS.—In the event of a default involving a loan to an

16 Indian tribe or tribal corporation made under this section

17 which is secured by an interest in land within such tribe’s

18 reservation (as determined by the Secretary of the Interior),

19 including a community in Alaska incorporated by the Sec20 retary of the Interior pursuant to the Indian Reorganiza21 tion Act (25 U.S.C. 461 et seq.), the lender shall only pursue

22 liquidation after offering to transfer the account to an eligi23 ble tribal member, the tribe, or the Indian housing author24 ity serving the tribe. If the lender subsequently proceeds to

25 liquidate the account, the lender shall not sell, transfer, or
199

•S 1452 EAH

1 otherwise dispose of or alienate the property except to one

2 of the entities described in the preceding sentence.’’.

3 SEC. 708. ENFORCEMENT PROVISIONS.

4 (a) IN GENERAL.—Title V of the Housing Act of 1949

5 (42 U.S.C. 1471 et seq.) is amended by adding after section

6 542 the following:

7 ‘‘SEC. 543. ENFORCEMENT PROVISIONS.

8 ‘‘(a) EQUITY SKIMMING.—

9 ‘‘(1) CRIMINAL PENALTY.—Whoever, as an

10 owner, agent, employee, or manager, or is otherwise

11 in custody, control, or possession of property that is

12 security for a loan made or guaranteed under this

13 title, willfully uses, or authorizes the use, of any part

14 of the rents, assets, proceeds, income, or other funds

15 derived from such property, for any purpose other

16 than to meet actual, reasonable, and necessary ex17 penses of the property, or for any other purpose not

18 authorized by this title or the regulations adopted

19 pursuant to this title, shall be fined under title 18,

20 United States Code, or imprisoned not more than 5

21 years, or both.

22 ‘‘(2) CIVIL SANCTIONS.—An entity or individual

23 who as an owner, operator, employee, or manager, or

24 who acts as an agent for a property that is security

25 for a loan made or guaranteed under this title where
200

•S 1452 EAH

1 any part of the rents, assets, proceeds, income, or

2 other funds derived from such property are used for

3 any purpose other than to meet actual, reasonable,

4 and necessary expenses of the property, or for any

5 other purpose not authorized by this title or the regu6 lations adopted pursuant to this title, shall be subject

7 to a fine of not more than $25,000 per violation. The

8 sanctions provided in this paragraph may be imposed

9 in addition to any other civil sanctions or civil mone10 tary penalties authorized by law.

11 ‘‘(b) CIVIL MONETARY PENALTIES.—

12 ‘‘(1) IN GENERAL.—The Secretary may, after no13 tice and opportunity for a hearing, impose a civil

14 monetary penalty in accordance with this subsection

15 against any individual or entity, including its own16 ers, officers, directors, general partners, limited part17 ners, or employees, who knowingly and materially

18 violate, or participate in the violation of, the provi19 sions of this title, the regulations issued by the Sec20 retary pursuant to this title, or agreements made in

21 accordance with this title, by—

22 ‘‘(A) submitting information to the Sec23 retary that is false;

24 ‘‘(B) providing the Secretary with false cer25 tifications;
201

•S 1452 EAH

1 ‘‘(C) failing to submit information re2 quested by the Secretary in a timely manner;

3 ‘‘(D) failing to maintain the property sub4 ject to loans made or guaranteed under this title

5 in good repair and condition, as determined by

6 the Secretary;

7 ‘‘(E) failing to provide management for a

8 project which received a loan made or guaran9 teed under this title that is acceptable to the Sec10 retary; or

11 ‘‘(F) failing to comply with the provisions

12 of applicable civil rights statutes and regula13 tions.

14 ‘‘(2) CONDITIONS FOR RENEWAL OR EXTEN15 SION.—The Secretary may require that expiring loan

16 or assistance agreements entered into under this title

17 shall not be renewed or extended unless the owner exe18 cutes an agreement to comply with additional condi19 tions prescribed by the Secretary, or executes a new

20 loan or assistance agreement in the form prescribed

21 by the Secretary.

22 ‘‘(3) AMOUNT.—

23 ‘‘(A) IN GENERAL.—The amount of a civil

24 monetary penalty imposed under this subsection

25 shall not exceed the greater of—
202

•S 1452 EAH

1 ‘‘(i) twice the damages the Department

2 of Agriculture, the guaranteed lender, or the

3 project that is secured for a loan under this

4 section suffered or would have suffered as a

5 result of the violation; or

6 ‘‘(ii) $50,000 per violation.

7 ‘‘(B) DETERMINATION.—In determining the

8 amount of a civil monetary penalty under this

9 subsection, the Secretary shall take into

10 consideration—

11 ‘‘(i) the gravity of the offense;

12 ‘‘(ii) any history of prior offenses by

13 the violator (including offenses occurring

14 prior to the enactment of this section);

15 ‘‘(iii) the ability of the violator to pay

16 the penalty;

17 ‘‘(iv) any injury to tenants;

18 ‘‘(v) any injury to the public;

19 ‘‘(vi) any benefits received by the viola20 tor as a result of the violation;

21 ‘‘(vii) deterrence of future violations;

22 and

23 ‘‘(viii) such other factors as the Sec24 retary may establish by regulation.
203

•S 1452 EAH

1 ‘‘(4) PAYMENT OF PENALTIES.—No payment of a

2 penalty assessed under this section may be made from

3 funds provided under this title or from funds of a

4 project which serve as security for a loan made or

5 guaranteed under this title.

6 ‘‘(5) REMEDIES FOR NONCOMPLIANCE.—

7 ‘‘(A) JUDICIAL INTERVENTION.—If a person

8 or entity fails to comply with a final determina9 tion by the Secretary imposing a civil monetary

10 penalty under this subsection, the Secretary may

11 request the Attorney General of the United States

12 to bring an action in an appropriate United

13 States district court to obtain a monetary judg14 ment against such individual or entity and such

15 other relief as may be available. The monetary

16 judgment may, in the court’s discretion, include

17 the attorney’s fees and other expenses incurred by

18 the United States in connection with the action.

19 ‘‘(B) REVIEWABILITY OF DETERMINA20 TION.—In an action under this paragraph, the

21 validity and appropriateness of a determination

22 by the Secretary imposing the penalty shall not

23 be subject to review.’’.
204

•S 1452 EAH

1 (b) CONFORMING AMENDMENT.—Section 514 of the

2 Housing Act of 1949 (42 U.S.C. 1484) is amended by strik3 ing subsection (j).

4 SEC. 709. AMENDMENTS TO TITLE 18 OF UNITED STATES

5 CODE.

6 (a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of

7 title 18, United States Code, is amended by inserting ‘‘any

8 violation of section 543(a)(1) of the Housing Act of 1949

9 (relating to equity skimming),’’ after ‘‘coupons having a

10 value of not less than $5,000,’’.

11 (b) OBSTRUCTION OF FEDERAL AUDITS.—Section

12 1516(a) of title 18, United States Code, is amended by in13 serting ‘‘or relating to any property that is security for a

14 loan that is made or guaranteed under title V of the Hous15 ing Act of 1949,’’ before ‘‘shall be fined under this title’’.

16 TITLE VIII—HOUSING FOR EL17 DERLY AND DISABLED FAMI18 LIES

19 SEC. 801. SHORT TITLE.

20 This title may be cited as the ‘‘Affordable Housing for

21 Seniors and Families Act’’.

22 SEC. 802. REGULATIONS.

23 The Secretary of Housing and Urban Development (re24 ferred to in this title as the ‘‘Secretary’’) shall issue any

25 regulations to carry out this title and the amendments made
205

•S 1452 EAH

1 by this title that the Secretary determines may or will affect

2 tenants of federally assisted housing only after notice and

3 opportunity for public comment in accordance with the pro4 cedure under section 553 of title 5, United States Code, ap5 plicable to substantive rules (notwithstanding subsections

6 (a)(2), (b)(B), and (d)(3) of such section). Notice of such

7 proposed rulemaking shall be provided by publication in

8 the Federal Register. In issuing such regulations, the Sec9 retary shall take such actions as may be necessary to ensure

10 that such tenants are notified of, and provided an oppor11 tunity to participate in, the rulemaking, as required by

12 such section 553.

13 SEC. 803. EFFECTIVE DATE.

14 (a) IN GENERAL.—The provisions of this title and the

15 amendments made by this title are effective as of the date

16 of enactment of this Act, unless such provisions or amend17 ments specifically provide for effectiveness or applicability

18 upon another date certain.

19 (b) EFFECT OF REGULATORY AUTHORITY.—Any au20 thority in this title or the amendments made by this title

21 to issue regulations, and any specific requirement to issue

22 regulations by a date certain, may not be construed to affect

23 the effectiveness or applicability of the provisions of this

24 title or the amendments made by this title under such provi25 sions and amendments and subsection (a) of this section.
206

•S 1452 EAH

1 Subtitle A—Refinancing for Section

2 202 Supportive Housing for the

3 Elderly

4 SEC. 811. PREPAYMENT AND REFINANCING.

5 (a) APPROVAL OF PREPAYMENT OF DEBT.—Upon re6 quest of the project sponsor of a project assisted with a loan

7 under section 202 of the Housing Act of 1959 (as in effect

8 before the enactment of the Cranston-Gonzalez National Af9 fordable Housing Act), the Secretary shall approve the pre10 payment of any indebtedness to the Secretary relating to

11 any remaining principal and interest under the loan as

12 part of a prepayment plan under which—

13 (1) the project sponsor agrees to operate the

14 project until the maturity date of the original loan

15 under terms at least as advantageous to existing and

16 future tenants as the terms required by the original

17 loan agreement or any rental assistance payments

18 contract under section 8 of the United States Housing

19 Act of 1937 (or any other rental housing assistance

20 programs of the Department of Housing and Urban

21 Development, including the rent supplement program

22 under section 101 of the Housing and Urban Develop23 ment Act of 1965 (12 U.S.C. 1701s)) relating to the

24 project; and
207

•S 1452 EAH

1 (2) the prepayment may involve refinancing of

2 the loan if such refinancing results in a lower interest

3 rate on the principal of the loan for the project and

4 in reductions in debt service related to such loan.

5 (b) SOURCES OF REFINANCING.—In the case of pre6 payment under this section involving refinancing, the

7 project sponsor may refinance the project through any third

8 party source, including financing by State and local hous9 ing finance agencies, use of tax-exempt bonds, multi-family

10 mortgage insurance under the National Housing Act, rein11 surance, or other credit enhancements, including risk shar12 ing as provided under section 542 of the Housing and Com13 munity Development Act of 1992 (12 U.S.C. 1707 note).

14 For purposes of underwriting a loan insured under the Na15 tional Housing Act, the Secretary may assume that any

16 section 8 rental assistance contract relating to a project will

17 be renewed for the term of such loan.

18 (c) USE OF UNEXPENDED AMOUNTS.—Upon execution

19 of the refinancing for a project pursuant to this section,

20 the Secretary shall make available at least 50 percent of

21 the annual savings resulting from reduced section 8 or other

22 rental housing assistance contracts in a manner that is ad23 vantageous to the tenants, including—

24 (1) not more than 15 percent of the cost of in25 creasing the availability or provision of supportive
208

•S 1452 EAH

1 services, which may include the financing of service

2 coordinators and congregate services;

3 (2) rehabilitation, modernization, or retrofitting

4 of structures, common areas, or individual dwelling

5 units;

6 (3) construction of an addition or other facility

7 in the project, including assisted living facilities (or,

8 upon the approval of the Secretary, facilities located

9 in the community where the project sponsor refi10 nances a project under this section, or pools shared

11 resources from more than 1 such project); or

12 (4) rent reduction of unassisted tenants residing

13 in the project according to a pro rata allocation of

14 shared savings resulting from the refinancing.

15 (d) USE OF CERTAIN PROJECT FUNDS.—The Sec16 retary shall allow a project sponsor that is prepaying and

17 refinancing a project under this section—

18 (1) to use any residual receipts held for that

19 project in excess of $500 per individual dwelling unit

20 for not more than 15 percent of the cost of activities

21 designed to increase the availability or provision of

22 supportive services; and

23 (2) to use any reserves for replacement in excess

24 of $1,000 per individual dwelling unit for activities

25 described in paragraphs (2) and (3) of subsection (c).
209

•S 1452 EAH

1 (e) BUDGET ACT COMPLIANCE.—This section shall be

2 effective only to extent or in such amounts that are provided

3 in advance in appropriation Acts.

4 Subtitle B—Authorization of Appro5 priations for Supportive Hous6 ing for the Elderly and Persons

7 With Disabilities

8 SEC. 821. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

9 Section 202 of the Housing Act of 1959 (12 U.S.C.

10 1701q) is amended by adding at the end the following:

11 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated for providing assistance

13 under this section such sums as may be necessary for each

14 of fiscal years 2001, 2002, and 2003. Of the amount pro15 vided in appropriation Acts for assistance under this sec16 tion in each such fiscal year, 5 percent shall be available

17 only for providing assistance in accordance with the re18 quirements under subsection (c)(4) (relating to matching

19 funds), except that if there are insufficient eligible appli20 cants for such assistance, any amount remaining shall be

21 used for assistance under this section.’’.
210

•S 1452 EAH

1 SEC. 822. SUPPORTIVE HOUSING FOR PERSONS WITH DIS2 ABILITIES.

3 Section 811 of the Cranston-Gonzalez National Afford4 able Housing Act (42 U.S.C. 8013) is amended by striking

5 subsection (m) and inserting the following:

6 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated for providing assistance

8 under this section such sums as may be necessary for each

9 of fiscal years 2001, 2002, and 2003. Of the amount pro10 vided in appropriation Acts for assistance under this sec11 tion in each such fiscal year, 5 percent shall be available

12 only for providing assistance in accordance with the re13 quirements under subsection (d)(5) (relating to matching

14 funds), except that if there are insufficient eligible appli15 cants for such assistance, any amount remaining shall be

16 used for assistance under this section.’’.

17 SEC. 823. SERVICE COORDINATORS AND CONGREGATE

18 SERVICES FOR ELDERLY AND DISABLED

19 HOUSING.

20 There are authorized to be appropriated to the Sec21 retary such sums as may be necessary for each of fiscal

22 years 2001, 2002, and 2003, for the following purposes:

23 (1) GRANTS FOR SERVICE COORDINATORS FOR

24 CERTAIN FEDERALLY ASSISTED MULTIFAMILY HOUS25 ING.—For grants under section 676 of the Housing
211

•S 1452 EAH

1 and Community Development Act of 1992 (42 U.S.C.

2 13632) for providing service coordinators.

3 (2) CONGREGATE SERVICES FOR FEDERALLY AS4 SISTED HOUSING.—For contracts under section 802 of

5 the Cranston-Gonzalez National Affordable Housing

6 Act (42 U.S.C. 8011) to provide congregate services

7 programs for eligible residents of eligible housing

8 projects under subparagraphs (B) through (D) of sub9 section (k)(6) of such section.

10 Subtitle C—Expanding Housing Op11 portunities for the Elderly and

12 Persons With Disabilities

13 PART 1—HOUSING FOR THE ELDERLY

14 SEC. 831. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER15 SHIPS.

16 Section 202(k)(4) of the Housing Act of 1959 (12

17 U.S.C. 1701q(k)(4)) is amended by inserting after subpara18 graph (C) the following:

19 ‘‘Such term includes a for-profit limited partnership

20 the sole general partner of which is an organization

21 meeting the requirements under subparagraphs (A),

22 (B), and (C), or a corporation wholly owned and con23 trolled by an organization meeting the requirements

24 under subparagraphs (A), (B), and (C).’’.
212

•S 1452 EAH

1 SEC. 832. MIXED FUNDING SOURCES.

2 Section 202(h)(6) of the Housing Act of 1959 (12

3 U.S.C. 1701q(h)(6)) is amended—

4 (1) by striking ‘‘non-Federal sources’’ and insert5 ing ‘‘sources other than this section’’; and

6 (2) by adding at the end the following new sen7 tence: ‘‘Notwithstanding any other provision of law,

8 assistance amounts provided under this section may

9 be treated as amounts not derived from a Federal

10 grant.’’.

11 SEC. 833. AUTHORITY TO ACQUIRE STRUCTURES.

12 Section 202 of the Housing Act of 1959 (12 U.S.C.

13 1701q) is amended—

14 (1) in subsection (b), by striking ‘‘from the Reso15 lution Trust Corporation’’; and

16 (2) in subsection (h)(2)—

17 (A) in the paragraph heading, by striking

18 ‘‘RTC PROPERTIES’’ and inserting ‘‘ACQUISI19 TION’’; and

20 (B) by striking ‘‘from the Resolution’’ and

21 all that follows through ‘‘Insurance Act’’.

22 SEC. 834. USE OF PROJECT RESERVES.

23 Section 202(j) of the Housing Act of 1959 (12 U.S.C.

24 1701q(j)) is amended by adding at the end the following:

25 ‘‘(8) USE OF PROJECT RESERVES.—Amounts for

26 project reserves for a project assisted under this sec-
213

•S 1452 EAH

1 tion may be used for costs, subject to reasonable limi2 tations as the Secretary determines appropriate, for

3 reducing the number of dwelling units in the project.

4 Such use shall be subject to the approval of the Sec5 retary to ensure that the use is designed to retrofit

6 units that are currently obsolete or unmarketable.’’.

7 SEC. 835. COMMERCIAL ACTIVITIES.

8 Section 202(h)(1) of the Housing Act of 1959 (12

9 U.S.C. 1701q(h)(1)) is amended by adding at the end the

10 following: ‘‘Neither this section nor any other provision of

11 law may be construed as prohibiting or preventing the loca12 tion and operation, in a project assisted under this section,

13 of commercial facilities for the benefit of residents of the

14 project and the community in which the project is located,

15 except that assistance made available under this section

16 may not be used to subsidize any such commercial facil17 ity.’’.

18 PART 2—HOUSING FOR PERSONS WITH

19 DISABILITIES

20 SEC. 841. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER21 SHIPS.

22 Section 811(k)(6) of the Housing Act of 1959 (42

23 U.S.C. 8013(k)(6)) is amended by inserting after subpara24 graph (D) the following:
214

•S 1452 EAH

1 ‘‘Such term includes a for-profit limited partnership

2 the sole general partner of which is an organization

3 meeting the requirements under subparagraphs (A),

4 (B), (C), and (D) or a corporation wholly owned and

5 controlled by an organization meeting the require6 ments under subparagraphs (A), (B), (C), and (D).’’.

7 SEC. 842. MIXED FUNDING SOURCES.

8 Section 811(h)(5) of the Cranston-Gonzalez National

9 Affordable Housing Act (42 U.S.C. 8013(h)(5)) is

10 amended—

11 (1) by striking ‘‘non-Federal sources’’ and insert12 ing ‘‘sources other than this section’’; and

13 (2) by adding at the end the following new sen14 tence: ‘‘Notwithstanding any other provision of law,

15 assistance amounts provided under this section may

16 be treated as amounts not derived from a Federal

17 grant.’’.

18 SEC. 843. TENANT-BASED ASSISTANCE.

19 Section 811 of the Cranston-Gonzalez National Afford20 able Housing Act (42 U.S.C. 8013) is amended—

21 (1) in subsection (d), by striking paragraph (4)

22 and inserting the following:

23 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

24 ‘‘(A) ADMINISTERING ENTITIES.—Tenant25 based rental assistance provided under subsection
215

•S 1452 EAH

1 (b)(1) may be provided only through a public

2 housing agency that has submitted and had ap3 proved an plan under section 7(d) of the United

4 States Housing Act of 1937 (42 U.S.C. 1437e(d))

5 that provides for such assistance, or through a

6 private nonprofit organization. A public housing

7 agency shall be eligible to apply under this sec8 tion only for the purposes of providing such ten9 ant-based rental assistance.

10 ‘‘(B) PROGRAM RULES.—Tenant-based rent11 al assistance under subsection (b)(1) shall be

12 made available to eligible persons with disabil13 ities and administered under the same rules that

14 govern tenant-based rental assistance made

15 available under section 8 of the United States

16 Housing Act of 1937, except that the Secretary

17 may waive or modify such rules, but only to the

18 extent necessary to provide for administering

19 such assistance under subsection (b)(1) through

20 private nonprofit organizations rather than

21 through public housing agencies.

22 ‘‘(C) ALLOCATION OF ASSISTANCE.—In de23 termining the amount of assistance provided

24 under subsection (b)(1) for a private nonprofit

25 organization or public housing agency, the Sec-
216

•S 1452 EAH

1 retary shall consider the needs and capabilities

2 of the organization or agency, in the case of a

3 public housing agency, as described in the plan

4 for the agency under section 7 of the United

5 States Housing Act of 1937.’’; and

6 (2) in subsection (l)(1)—

7 (A) by striking ‘‘subsection (b)’’ and insert8 ing ‘‘subsection (b)(2)’’;

9 (B) by striking the last comma and all that

10 follows through ‘‘subsection (n)’’; and

11 (C) by adding at the end the following:

12 ‘‘Notwithstanding any other provision of this

13 section, the Secretary may use not more than 25

14 percent of the total amounts made available for

15 assistance under this section for any fiscal year

16 for tenant-based rental assistance under sub17 section (b)(1) for persons with disabilities, and

18 no authority of the Secretary to waive provisions

19 of this section may be used to alter the percent20 age limitation under this sentence.’’.

21 SEC. 844. USE OF PROJECT RESERVES.

22 Section 811(j) of the Cranston-Gonzalez National Af23 fordable Housing Act (42 U.S.C. 8013(j)) is amended by

24 adding at the end the following:
217

•S 1452 EAH

1 ‘‘(7) USE OF PROJECT RESERVES.—Amounts for

2 project reserves for a project assisted under this sec3 tion may be used for costs, subject to reasonable limi4 tations as the Secretary determines appropriate, for

5 reducing the number of dwelling units in the project.

6 Such use shall be subject to the approval of the Sec7 retary to ensure that the use is designed to retrofit

8 units that are currently obsolete or unmarketable.’’.

9 SEC. 845. COMMERCIAL ACTIVITIES.

10 Section 811(h)(1) of the Cranston-Gonzalez National

11 Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended

12 by adding at the end the following: ‘‘Neither this section

13 nor any other provision of law may be construed as prohib14 iting or preventing the location and operation, in a project

15 assisted under this section, of commercial facilities for the

16 benefit of residents of the project and the community in

17 which the project is located, except that assistance made

18 available under this section may not be used to subsidize

19 any such commercial facility.’’.

20 PART 3—OTHER PROVISIONS

21 SEC. 851. SERVICE COORDINATORS.

22 (a) INCREASED FLEXIBILITY FOR USE OF SERVICE

23 COORDINATORS IN CERTAIN FEDERALLY ASSISTED HOUS24 ING.—Section 676 of the Housing and Community Develop25 ment Act of 1992 (42 U.S.C. 13632) is amended—
218

•S 1452 EAH

1 (1) in the section heading, by striking ‘‘MULTI2 FAMILY HOUSING ASSISTED UNDER NATIONAL

3 HOUSING ACT’’ and inserting ‘‘CERTAIN FEDER4 ALLY ASSISTED HOUSING’’;

5 (2) in subsection (a)—

6 (A) in the first sentence, by striking ‘‘(E)

7 and (F)’’ and inserting ‘‘(B), (C), (D), (E), (F),

8 and (G)’’; and

9 (B) in the last sentence—

10 (i) by striking ‘‘section 661’’ and in11 serting ‘‘section 671’’; and

12 (ii) by adding at the end the following:

13 ‘‘A service coordinator funded with a grant

14 under this section for a project may provide

15 services to low-income elderly or disabled

16 families living in the vicinity of such

17 project.’’;

18 (3) in subsection (d)—

19 (A) by striking ‘‘(E) or (F)’’ and inserting

20 ‘‘(B), (C), (D), (E), (F), or (G)’’; and

21 (B) by striking ‘‘section 661’’ and inserting

22 ‘‘section 671’’; and

23 (4) by striking subsection (c) and redesignating

24 subsection (d) (as amended by paragraph (3) of this

25 subsection) as subsection (c).
219

•S 1452 EAH

1 (b) REQUIREMENT TO PROVIDE SERVICE COORDINA2 TORS.—Section 671 of the Housing and Community Devel3 opment Act of 1992 (42 U.S.C. 13631) is amended—

4 (1) in the first sentence of subsection (a), by

5 striking ‘‘to carry out this subtitle pursuant to the

6 amendments made by this subtitle’’ and inserting the

7 following: ‘‘for providing service coordinators under

8 this section’’;

9 (2) in subsection (d), by inserting ‘‘)’’ after ‘‘sec10 tion 683(2)’’; and

11 (3) by adding at the end following:

12 ‘‘(e) SERVICES FOR LOW-INCOME ELDERLY OR DIS13 ABLED FAMILIES RESIDING IN VICINITY OF CERTAIN

14 PROJECTS.—To the extent only that this section applies to

15 service coordinators for covered federally assisted housing

16 described in subparagraphs (B), (C), (D), (E), (F), and (G)

17 of section 683(2), any reference in this section to elderly

18 or disabled residents of a project shall be construed to in19 clude low-income elderly or disabled families living in the

20 vicinity of such project.’’.

21 (c) PROTECTION AGAINST TELEMARKETING FRAUD.—

22 (1) SUPPORTIVE HOUSING FOR THE ELDERLY.—

23 The first sentence of section 202(g)(1) of the Housing

24 Act of 1959 (12 U.S.C. 1701q(g)(1)) is amended by

25 striking ‘‘and (F)’’ and inserting the following: ‘‘(F)
220

•S 1452 EAH

1 providing education and outreach regarding tele2 marketing fraud, in accordance with the standards

3 issued under section 671(f) of the Housing and Com4 munity Development Act of 1992 (42 U.S.C.

5 13631(f)); and (G)’’.

6 (2) OTHER FEDERALLY ASSISTED HOUSING.—

7 Section 671 of the Housing and Community Develop8 ment Act of 1992 (42 U.S.C. 13631), as amended by

9 subsection (b) of this section, is further amended—

10 (A) in the first sentence of subsection (c), by

11 inserting after ‘‘response,’’ the following: ‘‘edu12 cation and outreach regarding telemarketing

13 fraud in accordance with the standards issued

14 under subsection (f),’’; and

15 (B) by adding at the end the following:

16 ‘‘(f) PROTECTION AGAINST TELEMARKETING

17 FRAUD.—

18 ‘‘(1) IN GENERAL.—The Secretary, in coordina19 tion with the Secretary of Health and Human Serv20 ices, shall establish standards for service coordinators

21 in federally assisted housing who are providing edu22 cation and outreach to elderly persons residing in

23 such housing regarding telemarketing fraud. The

24 standards shall be designed to ensure that such edu25 cation and outreach informs such elderly persons of
221

•S 1452 EAH

1 the dangers of telemarketing fraud and facilitates the

2 investigation and prosecution of telemarketers engag3 ing in fraud against such residents.

4 ‘‘(2) CONTENTS.—The standards established

5 under this subsection shall require that any such edu6 cation and outreach be provided in a manner that—

7 ‘‘(A) informs such residents of—

8 ‘‘(i) the prevalence of telemarketing

9 fraud targeted against elderly persons;

10 ‘‘(ii) how telemarketing fraud works;

11 ‘‘(iii) how to identify telemarketing

12 fraud;

13 ‘‘(iv) how to protect themselves against

14 telemarketing fraud, including an expla15 nation of the dangers of providing bank ac16 count, credit card, or other financial or per17 sonal information over the telephone to un18 solicited callers;

19 ‘‘(v) how to report suspected attempts

20 at telemarketing fraud; and

21 ‘‘(vi) their consumer protection rights

22 under Federal law;

23 ‘‘(B) provides such other information as the

24 Secretary considers necessary to protect such

25 residents against fraudulent telemarketing; and
222

•S 1452 EAH

1 ‘‘(C) disseminates the information provided

2 by appropriate means, and in determining such

3 appropriate means, the Secretary shall consider

4 on-site presentations at federally assisted hous5 ing, public service announcements, a printed

6 manual or pamphlet, an Internet website, and

7 telephone outreach to residents whose names ap8 pear on ‘mooch lists’ confiscated from fraudulent

9 telemarketers.’’.

10 Subtitle D—Preservation of

11 Affordable Housing Stock

12 SEC. 861. SECTION 236 ASSISTANCE.

13 (a) EXTENSION OF AUTHORITY TO RETAIN EXCESS

14 CHARGES.—Section 236(g) of the National Housing Act (12

15 U.S.C. 1715z–1(g)), as amended by the Departments of Vet16 erans Affairs and Housing and Urban Development, and

17 Independent Agencies Appropriations Act, 2001, is

18 amended—

19 (1) in paragraph (2), by striking ‘‘Subject to

20 paragraph (3) and notwithstanding’’ and inserting

21 ‘‘Notwithstanding’’; and

22 (2) by striking paragraph (3) and redesignating

23 paragraph (4) as paragraph (3).

24 (b) TREATMENT OF EXCESS CHARGES PREVIOUSLY

25 COLLECTED.—Any excess charges that a project owner may
223

•S 1452 EAH

1 retain pursuant to the amendments made by subsections (b)

2 and (c) of section 532 of the Departments of Veterans Af3 fairs and Housing and Urban Development, and Inde4 pendent Agencies Appropriations Act, 2000 (Public Law

5 106–74; 113 Stat. 1116) that have been collected by such

6 owner since the date of the enactment of such Appropria7 tions Act and that such owner has not remitted to the Sec8 retary of Housing and Urban Development may be retained

9 by such owner unless such Secretary otherwise provides. To

10 the extent that a project owner has remitted such excess

11 charges to the Secretary since such date of enactment, the

12 Secretary may return to the relevant project owner any

13 such excess charges remitted. Notwithstanding any other

14 provision of law, amounts in the Rental Housing Assistance

15 Fund, or heretofore or subsequently transferred from the

16 Rental Housing Assistance Fund to the Flexible Subsidy

17 Fund, shall be available to make such return of excess

18 charges previously remitted to the Secretary, including the

19 return of excess charges referred to in section 532(e) of such

20 Appropriations Act.
224

•S 1452 EAH

1 Subtitle E—Mortgage Insurance for

2 Health Care Facilities

3 SEC. 871. REHABILITATION OF EXISTING HOSPITALS, NURS4 ING HOMES, AND OTHER FACILITIES.

5 Section 223(f) of the National Housing Act (12 U.S.C.

6 1715n(f)) is amended—

7 (1) in paragraph (1)—

8 (A) by striking ‘‘the refinancing of existing

9 debt of an’’; and

10 (B) by inserting ‘‘existing integrated service

11 facility,’’ after ‘‘existing board and care home,’’;

12 (2) in paragraph (4)—

13 (A) by inserting ‘‘existing integrated service

14 facility,’’ after ‘‘board and care home,’’ each

15 place it appears;

16 (B) in subparagraph (A), by inserting be17 fore the semicolon at the end the following: ‘‘,

18 which refinancing, in the case of a loan on a

19 hospital, home, or facility that is within 2 years

20 of maturity, shall include a mortgage made to

21 prepay such loan’’;

22 (C) in subparagraph (B), by inserting after

23 ‘‘indebtedness’’ the following: ‘‘, pay any other

24 costs including repairs, maintenance, minor im-
225

•S 1452 EAH

1 provements, or additional equipment which may

2 be approved by the Secretary,’’; and

3 (D) in subparagraph (D)—

4 (i) by inserting ‘‘existing’’ before ‘‘in5 termediate care facility’’; and

6 (ii) by inserting ‘‘existing’’ before

7 ‘‘board and care home’’; and

8 (3) by adding at the end the following:

9 ‘‘(6) In the case of purchase of an existing hos10 pital (or existing nursing home, existing assisted liv11 ing facility, existing intermediate care facility, exist12 ing board and care home, existing integrated service

13 facility or any combination thereof) the Secretary

14 shall prescribe such terms and conditions as the Sec15 retary deems necessary to assure that—

16 ‘‘(A) the proceeds of the insured mortgage

17 loan will be employed only for the purchase of

18 the existing hospital (or existing nursing home,

19 existing assisted living facility, existing inter20 mediate care facility, existing board and care

21 home, existing integrated service facility or any

22 combination thereof) including the retirement of

23 existing debt (if any), necessary costs associated

24 with the purchase and the insured mortgage fi25 nancing, and such other costs, including costs of
226

•S 1452 EAH

1 repairs, maintenance, improvements, and addi2 tional equipment, as may be approved by the

3 Secretary;

4 ‘‘(B) such existing hospital (or existing

5 nursing home, existing assisted living facility,

6 existing intermediate care facility, existing board

7 and care home, existing integrated service facil8 ity, or any combination thereof) is economically

9 viable; and

10 ‘‘(C) the applicable requirements for certifi11 cates, studies, and statements of section 232 (for

12 the existing nursing home, existing assisted liv13 ing facility, intermediate care facility, board

14 and care home, existing integrated service facil15 ity or any combination thereof, proposed to be

16 purchased) or of section 242 (for the existing hos17 pital proposed to be purchased) have been met.’’.

18 SEC. 872. NEW INTEGRATED SERVICE FACILITIES.

19 Section 232 of the National Housing Act (12 U.S.C.

20 1715w) is amended—

21 (1) in subsection (a)—

22 (A) in paragraph (1), by striking ‘‘are not

23 acutely ill and’’;

24 (B) in paragraph (2), by striking ‘‘never25 theless’’; and
227

•S 1452 EAH

1 (C) by adding at the end the following:

2 ‘‘(4) The development of integrated service facili3 ties for the care and treatment of the elderly and

4 other persons in need of health care and related serv5 ices, but who do not require hospital care, and the

6 support of health care facilities which provide such

7 health care and related services (including those that

8 support hospitals (as defined in section 242(b))).’’;

9 (2) in subsection (b)—

10 (A) in paragraph (1), by striking ‘‘acutely

11 ill and not’’;

12 (B) in paragraph (4), by inserting after the

13 second period the following: ‘‘Such term includes

14 a parity first mortgage or parity first deed of

15 trust, subject to such terms and conditions as the

16 Secretary may provide.’’;

17 (C) in paragraph (6)—

18 (i) by striking subparagraph (A) and

19 inserting the following:

20 ‘‘(A) meets all applicable licensing and reg21 ulatory requirements of the State, or if there is

22 no State law providing for such licensing and

23 regulation by the State, meets all applicable li24 censing and regulatory requirements of the mu25 nicipality or other political subdivision in which
228

•S 1452 EAH

1 the facility is located, or, in the absence of any

2 such requirements, meets any underwriting re3 quirements of the Secretary for such purposes;’’;

4 and

5 (ii) in subparagraph (C), by striking

6 ‘‘and’’ at the end;

7 (D) in paragraph (7), by striking the pe8 riod at the end and inserting ‘‘; and’’; and

9 (E) by adding at the end the following:

10 ‘‘(8) the term ‘integrated service facility’ means

11 a facility—

12 ‘‘(A) providing integrated health care deliv13 ery services designed and operated to provide

14 medical, convalescent, skilled and intermediate

15 nursing, board and care services, assisted living,

16 rehabilitation, custodial, personal care services,

17 or any combination thereof, to sick, injured, dis18 abled, elderly, or infirm persons, or providing

19 services for the prevention of illness, or any com20 bination thereof;

21 ‘‘(B) designed, in whole or in part, to pro22 vide a continuum of care, as determined by the

23 Secretary, for the sick, injured, disabled, elderly,

24 or infirm;
229

•S 1452 EAH

1 ‘‘(C) providing clinical services, outpatient

2 services, including community health services

3 and medical practice facilities and group prac4 tice facilities, to sick, injured, disabled, elderly,

5 or infirm persons not in need of the services ren6 dered in other facilities insurable under this

7 title, or for the prevention of illness, or any com8 bination thereof; or

9 ‘‘(D)(i) designed, in whole or in part to

10 provide supportive or ancillary services to hos11 pitals (as defined in section 242(b)), which serv12 ices may include services provided by special use

13 health care facilities, professional office build14 ings, laboratories, administrative offices, and

15 other facilities supportive or ancillary to health

16 care delivery by such hospitals; and

17 ‘‘(ii) that meet standards acceptable to the

18 Secretary, which may include standards gov19 erning licensure or State or local approval and

20 regulation of a mortgagor; or

21 ‘‘(E) that provides any combination of the

22 services under subparagraphs (A) through (D).’’;

23 (3) in subsection (d)—

24 (A) in the matter preceding paragraph

25 (1)—
230

•S 1452 EAH

1 (i) by inserting ‘‘board and care

2 home,’’ after ‘‘rehabilitated nursing home,’’;

3 (ii) by inserting ‘‘integrated service fa4 cility,’’ after ‘‘assisted living facility,’’ the

5 first 2 places it appears;

6 (iii) by inserting ‘‘board and care

7 home,’’ after ‘‘existing nursing home,’’; and

8 (iv) by striking ‘‘or a board and care

9 home’’ and inserting ‘‘, board and care

10 home or integrated service facility’’;

11 (B) in paragraph (2)—

12 (i) in the matter preceding subpara13 graph (A), by inserting before ‘‘, including’’

14 the following: ‘‘or a public body, public

15 agency, or public corporation eligible under

16 this section’’; and

17 (ii) in subparagraph (B), by striking

18 ‘‘energy conservation measures’’ and all

19 that follows through ‘‘95–619)’’ and insert20 ing ‘‘energy conserving improvements (as

21 defined in section 2(a))’’.

22 (C) in paragraph (4)(A)—

23 (i) in the first sentence—

24 (I) by inserting ‘‘, and integrated

25 service facilities that include such
231

•S 1452 EAH

1 nursing home and intermediate care

2 facilities,’’ before ‘‘, the Secretary’’;

3 (II) by striking ‘‘or section 1521

4 of the Public Health Service Act’’ and

5 inserting ‘‘of the Public Health Service

6 Act, or other applicable Federal law

7 (or, in the absence of applicable Fed8 eral law, by the Secretary),’’;

9 (III) by inserting ‘‘, or the por10 tion of an integrated service facility

11 providing such services,’’ before ‘‘cov12 ered by the mortgage,’’; and

13 (IV) by inserting ‘‘or for such

14 nursing or intermediate care services

15 within an integrated service facility’’

16 before ‘‘, and (ii)’’;

17 (ii) in the second sentence, by inserting

18 ‘‘(which may be within an integrated serv19 ice facility)’’ after ‘‘home and facility’’;

20 (iii) in the third sentence—

21 (I) by striking ‘‘mortgage under

22 this section’’ and all that follows

23 through ‘‘feasibility’’ and inserting the

24 following: ‘‘such mortgage under this

25 section unless (i) the proposed mort-
232

•S 1452 EAH

1 gagor or applicant for the mortgage in2 surance for the home or facility or

3 combined home or facility, or the inte4 grated service facility containing such

5 services, has commissioned and paid

6 for the preparation of an independent

7 study of market need for the project’’;

8 (II) in clause (i)(II), by striking

9 ‘‘and its relationship to, other health

10 care facilities and’’ and inserting ‘‘or

11 such facilities within an integrated

12 service facility, and its relationship to,

13 other facilities providing health care’’;

14 (III) in clause (i)(IV), by striking

15 ‘‘in the event the State does not pre16 pare the study,’’; and

17 (IV) in clause (i)(IV), by striking

18 ‘‘the State or’’; and

19 (V) in clause (ii), by striking ‘‘or

20 section 1521 of the Public Health Serv21 ice Act’’ and inserting ‘‘of the Public

22 Health Service Act, or other applicable

23 Federal law (or, in the absence of ap24 plicable Federal law, by the Sec25 retary),’’;
233

•S 1452 EAH

1 (iv) by striking the penultimate sen2 tence and inserting the following: ‘‘A study

3 commissioned or undertaken by the State in

4 which the facility will be located shall be

5 considered to satisfy such market study re6 quirement. The proposed mortgagor or ap7 plicant may reimburse the State for the cost

8 of an independent study referred to in the

9 preceding sentence.’’; and

10 (v) in the last sentence—

11 (I) by inserting ‘‘the proposed

12 mortgagor or applicant for mortgage

13 insurance may obtain from’’ after ‘‘10

14 individuals,’’;

15 (II) by striking ‘‘may’’ and in16 serting ‘‘and’’; and

17 (III) by inserting a comma before

18 ‘‘written support’’; and

19 (D) in paragraph (4)(C)(iii), by striking

20 ‘‘the appropriate State’’ and inserting ‘‘any ap21 propriate’’; and

22 (4) in subsection (i)(1), by inserting ‘‘integrated

23 service facilities,’’ after ‘‘assisted living facilities,’’.
234

•S 1452 EAH

1 SEC. 873. HOSPITALS AND HOSPITAL-BASED INTEGRATED

2 SERVICE FACILITIES.

3 Section 242 of the National Housing Act (12 U.S.C.

4 1715z–7) is amended—

5 (1) in subsection (b)—

6 (A) in paragraph (1)—

7 (i) in subparagraph (A), by adding

8 ‘‘and’’ at the end;

9 (ii) by striking subparagraph (B); and

10 (iii) by redesignating subparagraph

11 (C) as subparagraph (B) and striking

12 ‘‘and’’ at the end;

13 (B) in paragraph (2), by striking ‘‘respect14 fully’’ and all that follows through the period at

15 the end and inserting ‘‘given such terms in sec16 tion 207(a), except that the term ‘mortgage’ shall

17 include a parity first mortgage or parity first

18 deed of trust, subject to such terms and condi19 tions as the Secretary may provide; and’’; and

20 (C) by adding at the end the following:

21 ‘‘(3) the term ‘integrated service facility’ has the

22 meaning given the term in section 232(b).’’;

23 (2) in subsection (c), by striking ‘‘title VII of’’

24 and inserting ‘‘title VI of’’;

25 (3) in subsection (d)—
235

•S 1452 EAH

1 (A) in the matter preceding paragraph (1),

2 by inserting after ‘‘operation,’’ the following: ‘‘or

3 that covers an integrated service facility owned

4 or to be owned by an applicant or proposed

5 mortgagor that also owns a hospital in the same

6 market area, including equipment to be used in

7 its operation,’’;

8 (B) in paragraph (1)—

9 (i) in the first sentence, by inserting

10 before the period at the end the following:

11 ‘‘and who, in the case of a mortgage cov12 ering an integrated service facility, is also

13 the owner of a hospital facility’’; and

14 (ii) by adding at the end the following:

15 ‘‘A mortgage insured hereunder covering an

16 integrated service facility may only cover

17 the real and personal property where the el18 igible facility will be located.’’;

19 (C) in paragraph (2)(A), by inserting ‘‘or

20 integrated service facility’’ before the comma;

21 and

22 (D) in paragraph (2)(B), by striking ‘‘en23 ergy conservation measures’’ and all that follows

24 through ‘‘95–619)’’ and inserting ‘‘energy con-
236

•S 1452 EAH

1 serving improvements (as defined in section

2 2(a))’’;

3 (E) in paragraph (4)—

4 (i) in the first sentence—

5 (I) by inserting ‘‘for a hospital’’

6 after ‘‘any mortgage’’; and

7 (II) by striking ‘‘or section 1521

8 of the Public Health Service Act’’ and

9 inserting ‘‘of the Public Health Service

10 Act, or other applicable Federal law

11 (or, in the absence of applicable Fed12 eral law, by the Secretary),’’;

13 (ii) by striking the third sentence and

14 inserting the following: ‘‘If no such State

15 agency exists, or if the State agency exists

16 but is not empowered to provide a certifi17 cation that there is a need for the hospital

18 as set forth in subparagraph (A) of the first

19 sentence, the Secretary shall not insure any

20 such mortgage under this section unless: (A)

21 the proposed mortgagor or applicant for the

22 hospital has commissioned and paid for the

23 preparation of an independent study of

24 market need for the proposed project that:

25 (i) is prepared in accordance with the prin-
237

•S 1452 EAH

1 ciples established by the Secretary, in con2 sultation with the Secretary of Health and

3 Human Services (to the extent the Secretary

4 of Housing and Urban Development con5 siders appropriate); (ii) assesses, on a

6 marketwide basis, the impact of the pro7 posed hospital on, and its relationship to,

8 other facilities providing health care serv9 ices, the percentage of excess beds, demo10 graphic projections, alternative health care

11 delivery systems, and the reimbursement

12 structure of the hospital; (iii) is addressed

13 to and is acceptable to the Secretary in

14 form and substance; and (iv) is prepared by

15 a financial consultant selected by the pro16 posed mortgagor or applicant and approved

17 by the Secretary; and (B) the State com18 plies with the other provisions of this para19 graph that would otherwise be required to

20 be met by a State agency designated in ac21 cordance with section 604(a)(1) of the Pub22 lic Health Service Act, or other applicable

23 Federal law (or, in the absence of applicable

24 Federal law, by the Secretary). A study

25 commissioned or undertaken by the State in
238

•S 1452 EAH

1 which the hospital will be located shall be

2 considered to satisfy such market study re3 quirement.’’; and

4 (iii) in the last sentence, by striking

5 ‘‘feasibility’’; and

6 (4) in subsection (f), by inserting ‘‘and public

7 integrated service facilities’’ after ‘‘public hospitals’’.

8 TITLE IX—OTHER RELATED

9 HOUSING PROVISIONS

10 SEC. 901. EXTENSION OF LOAN TERM FOR MANUFACTURED

11 HOME LOTS.

12 Section 2(b)(3)(E) of the National Housing Act (12

13 U.S.C. 1703(b)(3)(E)) is amended by striking ‘‘fifteen’’ and

14 inserting ‘‘twenty’’.

15 SEC. 902. USE OF SECTION 8 VOUCHERS FOR OPT-OUTS.

16 (a) IN GENERAL.—Section 8(t)(2) of the United States

17 Housing Act of 1937 (42 U.S.C. 1437f(t)(2)), as amended

18 by the Departments of Veterans Affairs and Housing and

19 Urban Development, and Independent Agencies Appropria20 tions Act, 2001, is amended by striking ‘‘fiscal year 1996’’

21 and inserting ‘‘fiscal year 1994’’.

22 (b) EFFECTIVE DATE.—The amendment under sub23 section (a) shall be made and shall apply—

24 (1) upon the enactment of this Act, if the De25 partments of Veterans Affairs and Housing and
239

•S 1452 EAH

1 Urban Development, and Independent Agencies Ap2 propriations Act, 2001, is enacted before the enact3 ment of this Act; and

4 (2) immediately after the enactment of such ap5 propriations Act, if such appropriations Act is en6 acted after the enactment of this Act.

7 SEC. 903. MAXIMUM PAYMENT STANDARD FOR ENHANCED

8 VOUCHERS.

9 (a) IN GENERAL.—Section 8(t)(1)(B) of the United

10 States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)), as

11 amended by the Departments of Veterans Affairs and Hous12 ing and Urban Development, and Independent Agencies

13 Appropriations Act, 2001, is amended by inserting before

14 the semicolon at the end the following: ‘‘, except that a limit

15 shall not be considered reasonable for purposes of this sub16 paragraph if it adversely affects such assisted families’’.

17 (b) EFFECTIVE DATE.—The amendment under sub18 section (a) shall be made and shall apply—

19 (1) upon the enactment of this Act, if the De20 partments of Veterans Affairs and Housing and

21 Urban Development, and Independent Agencies Ap22 propriations Act, 2001, is enacted before the enact23 ment of this Act; and
240

•S 1452 EAH

1 (2) immediately after the enactment of such ap2 propriations Act, if such appropriations Act is en3 acted after the enactment of this Act.

4 SEC. 904. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI5 LIES’’ TO RENT DWELLING UNITS IN AS6 SISTED PROJECTS.

7 Section 215(a) of the Cranston-Gonzalez National Af8 fordable Housing Act (42 U.S.C. 12745(a)) is amended by

9 adding at the end the following new paragraph:

10 ‘‘(6) WAIVER OF QUALIFYING RENT.—

11 ‘‘(A) IN GENERAL.—For the purpose of pro12 viding affordable housing appropriate for fami13 lies described in subparagraph (B), the Secretary

14 may, upon the application of the project owner,

15 waive the applicability of subparagraph (A) of

16 paragraph (1) with respect to a dwelling unit

17 if—

18 ‘‘(i) the unit is occupied by such a

19 family, on whose behalf tenant-based assist20 ance is provided under section 8 of the

21 United States Housing Act of 1937 (42

22 U.S.C. 1437f);

23 ‘‘(ii) the rent for the unit is not greater

24 than the existing fair market rent for com25 parable units in the area, as established by
241

•S 1452 EAH

1 the Secretary under section 8 of the United

2 States Housing Act of 1937; and

3 ‘‘(iii) the Secretary determines that the

4 waiver, together with waivers under this

5 paragraph for other dwelling units in the

6 project, will result in the use of amounts de7 scribed in clause (iii) in an effective man8 ner that will improve the provision of af9 fordable housing for such families.

10 ‘‘(B) ELIGIBLE FAMILIES.—A family de11 scribed in this subparagraph is a family that

12 consists of at least one elderly person (who is the

13 head of household) and one or more of such per14 son’s grand children, great grandchildren, great

15 nieces, great nephews, or great great grand16 children (as defined by the Secretary), but does

17 not include any parent of such grandchildren,

18 great grandchildren, great nieces, great nephews,

19 or great great grandchildren. Such term includes

20 any such grandchildren, great grandchildren,

21 great nieces, great nephews, or great great grand22 children who have been legally adopted by such

23 elderly person.’’.
242

•S 1452 EAH

1 TITLE X—BANKING AND

2 HOUSING AGENCY REPORTS

3 SEC. 1001. SHORT TITLE.

4 This title may be cited as the ‘‘Federal Reporting Act

5 of 2000’’.

6 SEC. 1002. AMENDMENTS TO THE FEDERAL RESERVE ACT.

7 (a) REPEAL.—Section 2A of the Federal Reserve Act

8 (12 U.S.C. 225a) is amended by striking all after the first

9 sentence.

10 (b) APPEARANCES BEFORE AND REPORTS TO THE

11 CONGRESS.—

12 (1) IN GENERAL.—The Federal Reserve Act (12

13 U.S.C. 221 et seq.) is amended by inserting after sec14 tion 2A the following new section:

15 ‘‘SEC. 2B. APPEARANCES BEFORE AND REPORTS TO THE

16 CONGRESS.

17 ‘‘(a) APPEARANCES BEFORE THE CONGRESS.—

18 (1) IN GENERAL.—The Chairman of the Board

19 shall appear before the Congress at semi-annual hear20 ings, as specified in paragraph (2), regarding—

21 ‘‘(A) the efforts, activities, objectives and

22 plans of the Board and the Federal Open Market

23 Committee with respect to the conduct of mone24 tary policy; and
243

•S 1452 EAH

1 ‘‘(B) economic developments and prospects

2 for the future described in the report required in

3 subsection (b).

4 ‘‘(2) SCHEDULE.—The Chairman of the Board

5 shall appear—

6 ‘‘(A) before the Committee on Banking and

7 Financial Services of the House of Representa8 tives on or about February 20 of even numbered

9 calendar years and on or about July 20 of odd

10 numbered calendar years;

11 ‘‘(B) before the Committee on Banking,

12 Housing, and Urban Affairs of the Senate on or

13 about July 20 of even numbered calendar years

14 and on or about February 20 of odd numbered

15 calendar years; and

16 ‘‘(C) before either Committee referred to in

17 subparagraph (A) or (B), upon request, following

18 the scheduled appearance of the Chairman before

19 the other Committee under subparagraph (A) or

20 (B).

21 ‘‘(b) CONGRESSIONAL REPORT.—The Board shall, con22 current with each semi-annual hearing required by this sec23 tion, submit a written report to the Committee on Banking,

24 Housing, and Urban Affairs of the Senate and the Com25 mittee on Banking and Financial Services of the House of
244

•S 1452 EAH

1 Representatives, containing a discussion of the conduct of

2 monetary policy and economic developments and prospects

3 for the future, taking into account past and prospective de4 velopments in employment, unemployment, production, in5 vestment, real income, productivity, exchange rates, inter6 national trade and payments, and prices.’’.

7 SEC. 1003. PRESERVATION OF CERTAIN REPORTING RE8 QUIREMENTS.

9 Section 3003(a)(1) of the Federal Reports Elimination

10 and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not

11 apply to any report required to be submitted under any

12 of the following provisions of law:

13 (1) Section 3 of the Employment Act of 1946 (15

14 U.S.C. 1022).

15 (2) Section 309 of the Defense Production Act of

16 1950 (50 U.S.C. App. 2099).

17 (3) Section 603 of the Public Works and Eco18 nomic Development Act of 1965 (42 U.S.C. 3213).

19 (4) Section 7(o)(1) of the Department of Housing

20 and Urban Development Act (42 U.S.C. 3535(o)(1)).

21 (5) Section 540(c) of the National Housing Act

22 (12 U.S.C. 1735f–18(c)).

23 (6) Paragraphs (2) and (6) of section 808(e) of

24 the Civil Rights Act of 1968 (42 U.S.C. 3608(e)).
245

•S 1452 EAH

1 (7) Section 1061 of the Housing and Community

2 Development Act of 1992 (42 U.S.C. 4856).

3 (8) Section 203(v) of the National Housing Act

4 (12 U.S.C. 1709(v)), as added by section 504 of the

5 Housing and Community Development Act of 1992

6 (Public Law 102–550; 106 Stat. 3780).

7 (9) Section 802 of the Housing Act of 1954 (12

8 U.S.C. 1701o).

9 (10) Section 8 of the Department of Housing

10 and Urban Development Act (42 U.S.C. 3536).

11 (11) Section 1320 of the National Flood Insur12 ance Act of 1968 (42 U.S.C. 4027).

13 (12) Section 4(e)(2) of the Department of Hous14 ing and Urban Development Act (42 U.S.C.

15 3533(e)(2).

16 (13) Section 205(g) of the National Housing Act

17 (12 U.S.C. 1711(g)).

18 (14) Section 701(c)(1) of the International Fi19 nancial Institutions Act (22 U.S.C. 262d(c)(1)).

20 (15) Paragraphs (1) and (2) of section 5302(c)

21 of title 31, United States Code.

22 (16) Section 18(f)(7) of the Federal Trade Com23 mission Act. (15 U.S.C. 57a(f)(7)).

24 (17) Section 333 of the Revised Statutes of the

25 United States (12 U.S.C. 14).
246

•S 1452 EAH

1 (18) Section 3(g) of the Home Owners’ Loan Act

2 (12 U.S.C. 1462a(g)).

3 (19) Section 304 of the Appalachian Regional

4 Development Act of 1965 (40 U.S.C. App. 304).

5 (20) Sections 2(b)(1)(A), 8(a), 8(c), 10(g)(1),

6 and 11(c) of the Export-Import Bank Act of 1945 (12

7 U.S.C. 635(b)(1)(A), 635g(a), 635g(c), 635i–3(g), and

8 635i–5(c)).

9 (21) Section 17(a) of the Federal Deposit Insur10 ance Act (12 U.S.C. 1827(a)).

11 (22) Section 13 of the Federal Financing Bank

12 Act of 1973 (12 U.S.C. 2292).

13 (23) Section 2B(d) of the Federal Home Loan

14 Bank Act (12 U.S.C. 1422b(d)).

15 (24) Section 1002(b) of Financial Institutions

16 Reform, Recovery, and Enforcement Act of 1989 (12

17 U.S.C. 1811 note).

18 (25) Section 8 of the Fair Credit and Charge

19 Card Disclosure Act of 1988 (15 U.S.C. 1637 note).

20 (26) Section 136(b)(4)(B) of the Truth in Lend21 ing Act (15 U.S.C. 1646(b)(4)(B)).

22 (27) Section 707 of the Equal Credit Oppor23 tunity Act (15 U.S.C. 1691f).

24 (28) Section 114 of the Truth in Lending Act

25 (15 U.S.C. 1613).
247

•S 1452 EAH

1 (29) The seventh undesignated paragraph of sec2 tion 10 of the Federal Reserve Act (12 U.S.C. 247).

3 (30) The tenth undesignated paragraph of sec4 tion 10 of the Federal Reserve Act (12 U.S.C. 247a).

5 (31) Section 815 of the Fair Debt Collection

6 Practices Act (15 U.S.C. 1692m).

7 (32) Section 102(d) of the Federal Credit Union

8 Act (12 U.S.C. 1752a(d)).

9 (33) Section 21B(i) of the Federal Home Loan

10 Bank Act (12 U.S.C. 1441b(i)).

11 (34) Section 607(a) of the Housing and Commu12 nity Development Amendments of 1978 (42 U.S.C.

13 8106(a)).

14 (35) Section 708(l) of the Defense Production Act

15 of 1950 (50 U.S.C. Ap. 2158(l)).

16 (36) Section 2546 of the Comprehensive Thrift

17 and Bank Fraud Prosecution and Taxpayer Recovery

18 Act of 1990 (28 U.S.C. 522 note).

19 (37) Section 202(b)(8) of the National Housing

20 Act (12 U.S.C. 1708(b)(8)).

21 SEC. 1004. COORDINATION OF REPORTING REQUIREMENTS.

22 (a) FEDERAL DEPOSIT INSURANCE CORPORATION.—

23 Section 17(a) of the Federal Deposit Insurance Act (12

24 U.S.C. 1827(a)) is amended by adding at the end the fol25 lowing new paragraph:
248

•S 1452 EAH

1 ‘‘(3) COORDINATION WITH OTHER REPORT RE2 QUIREMENTS.—The report required under this sub3 section shall include the report required under section

4 18(f)(7) of the Federal Trade Commission Act.’’.

5 (b) BOARD OF GOVERNORS OF THE FEDERAL RE6 SERVE SYSTEM.—The 7th undesignated paragraph of sec7 tion 10 of the Federal Reserve Act (12 U.S.C. 247) is

8 amended by adding at the end the following new sentence:

9 ‘‘The report required under this paragraph shall include the

10 reports required under section 707 of the Equal Credit Op11 portunity Act, section 18(f)(7) of the Federal Trade Com12 mission Act, section 114 of the Truth in Lending Act, and

13 the 10th undesignated paragraph of this section.’’.

14 (c) COMPTROLLER OF THE CURRENCY.—Section 333

15 of the Revised Statutes of the United States (12 U.S.C. 14)

16 is amended by adding at the end the following new sentence:

17 ‘‘The report required under this section shall include the

18 report required under section 18(f)(7) of the Federal Trade

19 Commission Act.’’.

20 (d) EXPORT-IMPORT BANK.—

21 (1) IN GENERAL.— Section 2(b)(1)(A) of the Ex22 port-Import Bank Act of 1945 (12 U.S.C.

23 635(b)(1)(A)) is amended—

24 (A) by striking ‘‘a annual’’ and inserting

25 ‘‘an annual’’; and
249

•S 1452 EAH

1 (B) by adding at the end the following new

2 sentence: ‘‘The annual report required under this

3 subparagraph shall include the report required

4 under section 10(g).’’.

5 (2) TECHNICAL AND CONFORMING AMEND6 MENT.—Section 10(g)(1) of the Export-Import Bank

7 Act of 1945 (12 U.S.C. 635i–3(g)(1)) is amended—

8 (A) by striking ‘‘On or’’ and all that follows

9 through ‘‘the Bank’’ and inserting ‘‘The Bank’’;

10 and

11 (B) by striking ‘‘a report’’ and inserting

12 ‘‘an annual report’’.

13 (e) DEPARTMENT OF HOUSING AND URBAN DEVELOP14 MENT.—Section 8 of the Department of Housing and Urban

15 Development Act (42 U.S.C. 3536) is amended by adding

16 at the end the following new sentence: ‘‘The report required

17 under this section shall include the reports required under

18 paragraphs (2) and (6) of section 808(e) of the Civil Rights

19 Act of 1968, the reports required under subsections (a) and

20 (b) of section 1061 of the Housing and Community Develop21 ment Act of 1992, the report required under section 802

22 of the Housing Act of 1954, and the report required under

23 section 4(e)(2) of this Act.’’.

24 (f) FEDERAL HOUSING ADMINISTRATION.—Section

25 203(v) of the National Housing Act (12 U.S.C. 1709(v)),
250

•S 1452 EAH

1 as added by section 504 of the Housing and Community

2 Development Act of 1992, is amended by adding at the end

3 the following new sentence:

4 ‘‘The report required under this subsection shall include the

5 report required under section 540(c) and the report required

6 under section 205(g).’’.

7 (g) INTERNATIONAL FINANCIAL INSTITUTIONS ACT.—

8 Section 701(c)(1) of the International Financial Institu9 tions Act (22 U.S.C. 262d(c)(1)) is amended by striking

10 ‘‘Not later’’ and all that follows through ‘‘quarterly’’ and

11 inserting ‘‘The Secretary of the Treasury shall report annu12 ally’’.

13 SEC. 1005. ELIMINATION OF CERTAIN REPORTING REQUIRE14 MENTS.

15 (a) EXPORT-IMPORT BANK.—The Export-Import

16 Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended—

17 (1) in section 2(b)(1)(D)—

18 (A) by striking ‘‘(i)’’; and

19 (B) by striking clause (ii);

20 (2) in section 2(b)(8), by striking the last sen21 tence;

22 (3) in section 6(b), by striking paragraph (2)

23 and redesignating paragraph (3) as paragraph (2);

24 and
251

•S 1452 EAH

1 (4) in section 8, by striking subsections (b) and

2 (d) and redesignating subsections (c) and (e) as sub3 sections (b) and (c), respectively.

4 (b) FEDERAL DEPOSIT INSURANCE CORPORATION.—

5 Section 17 of the Federal Deposit Insurance Act (12 U.S.C.

6 1827) is amended by striking subsection (h).

7 TITLE XI—NUMISMATIC COINS

8 SEC. 1101. SHORT TITLE.

9 This title may be cited as the ‘‘United States Mint Nu10 mismatic Coin Clarification Act of 2000’’.

11 SEC. 1102. CLARIFICATION OF MINT’S AUTHORITY.

12 (a) SILVER PROOF COINS.—Section 5132(a)(2)(B)(i)

13 of title 31, United States Code, is amended by striking

14 ‘‘paragraphs (1)’’ and inserting ‘‘paragraphs (2)’’.

15 (b) PLATINUM COINS.—Section 5112(k) of title 31,

16 United States Code, is amended by striking ‘‘bullion’’ and

17 inserting ‘‘platinum bullion coins’’.

18 SEC. 1103. ADDITIONAL REPORT REQUIREMENT.

19 Section 5134(e)(2) of title 31, United States Code, is

20 amended—

21 (1) in the matter preceding subparagraph (A),

22 by striking ‘‘reflect’’ and inserting ‘‘contain’’;

23 (2) by striking ‘‘and’’ at the end of subpara24 graph (C);
252

•S 1452 EAH

1 (3) by striking the period at the end of subpara2 graph (D) and inserting ‘‘; and’’; and

3 (4) by adding at the end the following new sub4 paragraph:

5 ‘‘(E) a supplemental schedule detailing—

6 ‘‘(i) the costs and expenses for the pro7 duction, for the marketing, and for the dis8 tribution of each denomination of circu9 lating coins produced by the Mint during

10 the fiscal year and the per-unit cost of pro11 ducing, of marketing, and of distributing

12 each denomination of such coins; and

13 ‘‘(ii) the gross revenue derived from the

14 sales of each such denomination of coins.’’.

15 TITLE XII—FINANCIAL

16 REGULATORY RELIEF

17 SEC. 1200. SHORT TITLE.

18 This title may be cited as the ‘‘Financial Regulatory

19 Relief and Economic Efficiency Act of 2000’’.
253

•S 1452 EAH

1 Subtitle A—Improving Monetary

2 Policy and Financial Institution

3 Management Practices

4 SEC. 1201. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY

5 PROVISION.

6 (a) REPEAL OF LIQUIDITY PROVISION.—Section 6 of

7 the Home Owners’ Loan Act (12 U.S.C. 1465) is repealed.

8 (b) CONFORMING AMENDMENTS.—

9 (1) SECTION 5.—Section 5(c)(1)(M) of the Home

10 Owners’ Loan Act (12 U.S.C. 1464(c)(1)(M)) is

11 amended to read as follows:

12 ‘‘(M) LIQUIDITY INVESTMENTS.—Invest13 ments (other than equity investments), identified

14 by the Director, for liquidity purposes, including

15 cash, funds on deposit at a Federal reserve bank

16 or a Federal home loan bank, or bankers’ accept17 ances.’’.

18 (2) SECTION 10.—Section 10(m)(4)(B)(iii) of the

19 Home Owners’ Loan Act (12 U.S.C.

20 1467a(m)(4)(B)(iii)) is amended by inserting ‘‘as in

21 effect on the day before the date of the enactment of

22 the Financial Regulatory Relief and Economic Effi23 ciency Act of 2000, after ‘‘Loan Act,’’.
254

•S 1452 EAH

1 SEC. 1202. NONCONTROLLING INVESTMENTS BY SAVINGS

2 ASSOCIATION HOLDING COMPANIES.

3 Section 10(e)(1)(A)(iii) of the Home Owners’ Loan Act

4 (12 U.S.C. 1467a(e)(1)(A)(iii)) is amended—

5 (1) by inserting ‘‘, except with the prior written

6 approval of the Director,’’ after ‘‘or to retain’’; and

7 (2) by striking ‘‘so acquire or retain’’ and insert8 ing ‘‘acquire or retain, and the Director may not au9 thorize acquisition or retention of,’’.

10 SEC. 1203. REPEAL OF DEPOSIT BROKER NOTIFICATION

11 AND RECORDKEEPING REQUIREMENT.

12 Section 29A of the Federal Deposit Insurance Act (12

13 U.S.C. 1831f–1) is hereby repealed.

14 SEC. 1204. EXPEDITED PROCEDURES FOR CERTAIN REOR15 GANIZATIONS.

16 The National Bank Consolidation and Merger Act (12

17 U.S.C. 215 et seq.) is amended—

18 (1) by redesignating section 5 as section 7; and

19 (2) by inserting after section 4 the following new

20 section:

21 ‘‘SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGA22 NIZATIONS.

23 ‘‘(a) IN GENERAL.—A national banking association

24 may, with the approval of the Comptroller, pursuant to

25 rules and regulations promulgated by the Comptroller, and

26 upon the affirmative vote of the shareholders of such associa-
255

•S 1452 EAH

1 tion owning at least two-thirds of its capital stock out2 standing, reorganize so as to become a subsidiary of a bank

3 holding company or of a company that will, upon con4 summation of such reorganization, become a bank holding

5 company.

6 ‘‘(b) REORGANIZATION PLAN.—A reorganization au7 thorized under subsection (a) shall be carried out in accord8 ance with a reorganization plan that—

9 ‘‘(1) specifies the manner in which the reorga10 nization shall be carried out;

11 ‘‘(2) is approved by a majority of the entire

12 board of directors of the association;

13 ‘‘(3) specifies—

14 ‘‘(A) the amount of cash or securities of the

15 bank holding company, or both, or other consid16 eration to be paid to the shareholders of the reor17 ganizing association in exchange for their shares

18 of stock of the association;

19 ‘‘(B) the date as of which the rights of each

20 shareholder to participate in such exchange will

21 be determined; and

22 ‘‘(C) the manner in which the exchange will

23 be carried out; and

24 ‘‘(4) is submitted to the shareholders of the reor25 ganizing association at a meeting to be held on the
256

•S 1452 EAH

1 call of the directors in accordance with the procedures

2 prescribed in connection with a merger of a national

3 bank under section 3.

4 ‘‘(c) RIGHTS OF DISSENTING SHAREHOLDERS.—If,

5 pursuant to this section, a reorganization plan has been

6 approved by the shareholders and the Comptroller, any

7 shareholder of the association who has voted against the re8 organization at the meeting referred to in subsection (b)(4),

9 or has given notice in writing at or prior to that meeting

10 to the presiding officer that the shareholder dissents from

11 the reorganization plan, shall be entitled to receive the value

12 of his or her shares, as provided by section 3 for the merger

13 of a national bank.

14 ‘‘(d) EFFECT OF REORGANIZATION.—The corporate ex15 istence of an association that reorganizes in accordance

16 with this section shall not be deemed to have been affected

17 in any way by reason of such reorganization.

18 ‘‘(e) APPROVAL UNDER THE BANK HOLDING COMPANY

19 ACT.—This section does not affect in any way the applica20 bility of the Bank Holding Company Act of 1956 to a trans21 action described in subsection (a).’’.

22 SEC. 1205. NATIONAL BANK DIRECTORS.

23 (a) AMENDMENTS TO THE REVISED STATUTES.—Sec24 tion 5145 of the Revised Statutes of the United States (12

25 U.S.C. 71) is amended—
257

•S 1452 EAH

1 (1) by striking ‘‘for one year’’ and inserting ‘‘for

2 a period of not more than 3 years’’; and

3 (2) by adding at the end the following: ‘‘In ac4 cordance with regulations issued by the Comptroller

5 of the Currency, an association may adopt bylaws

6 that provide for staggering the terms of its directors.’’.

7 (b) AMENDMENT TO THE BANKING ACT OF 1933.—Sec8 tion 31 of the Banking Act of 1933 (12 U.S.C. 71a) is

9 amended in the first sentence, by inserting before the period

10 ‘‘, except that the Comptroller of the Currency may, by reg11 ulation or order, exempt a national banking association

12 from the 25-member limit established by this section’’.

13 SEC. 1206. AMENDMENT TO NATIONAL BANK CONSOLIDA14 TION AND MERGER ACT.

15 The National Bank Consolidation and Merger Act (12

16 U.S.C. 215 et seq.) is amended by inserting after section

17 5, as added by this title, the following new section:

18 ‘‘SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDI19 ARIES AND NONBANK AFFILIATES.

20 ‘‘(a) IN GENERAL.—Upon the approval of the Comp21 troller, a national banking association may merge with 1

22 or more of its nonbank subsidiaries or affiliates.

23 ‘‘(b) SCOPE.—Nothing in this section shall be

24 construed—
258

•S 1452 EAH

1 ‘‘(1) to affect the applicability of section 18(c) of

2 the Federal Deposit Insurance Act; or

3 ‘‘(2) to grant a national banking association any

4 power or authority that is not permissible for a na5 tional banking association under other applicable

6 provisions of law.

7 ‘‘(c) REGULATIONS.—The Comptroller shall promul8 gate regulations to implement this section.’’.

9 SEC. 1207. LOANS ON OR PURCHASES BY INSTITUTIONS OF

10 THEIR OWN STOCK; AFFILIATIONS.

11 (a) AMENDMENT TO THE REVISED STATUTES.—Sec12 tion 5201 of the Revised Statutes of the United States (12

13 U.S.C. 83) is amended to read as follows:

14 ‘‘SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.

15 ‘‘(a) GENERAL PROHIBITION.—No national banking

16 association shall make any loan or discount on the security

17 of the shares of its own capital stock.

18 ‘‘(b) EXCLUSION.—For purposes of this section, an as19 sociation shall not be deemed to be making a loan or dis20 count on the security of the shares of its own capital stock

21 if it acquires the stock to prevent loss upon a debt previously

22 contracted for in good faith.’’.

23 (b) AMENDMENTS TO THE FEDERAL DEPOSIT INSUR24 ANCE ACT.—Section 18 of the Federal Deposit Insurance

25 Act (12 U.S.C. 1828) is amended—
259

•S 1452 EAH

1 (1) by redesignating subsection (t), as added by

2 section 730 of the Gramm-Leach-Bliley Act (Public

3 Law 106–102; 113 Stat. 1476), as subsection (u); and

4 (2) by adding at the end the following new sub5 section:

6 ‘‘(v) LOANS BY INSURED INSTITUTIONS ON THEIR

7 OWN STOCK.—

8 ‘‘(1) GENERAL PROHIBITION.—No insured depos9 itory institution may make any loan or discount on

10 the security of the shares of its own capital stock.

11 ‘‘(2) EXCLUSION.—For purposes of this sub12 section, an insured depository institution shall not be

13 deemed to be making a loan or discount on the secu14 rity of the shares of its own capital stock if it ac15 quires the stock to prevent loss upon a debt previously

16 contracted for in good faith.’’.

17 SEC. 1208. PURCHASED MORTGAGE SERVICING RIGHTS.

18 Section 475 of the Federal Deposit Insurance Corpora19 tion Improvement Act of 1991 (12 U.S.C. 1828 note) is

20 amended—

21 (1) in subsection (a)(1), by inserting ‘‘(or such

22 other percentage exceeding 90 percent but not exceed23 ing 100 percent, as may be determined under sub24 section (b))’’ after ‘‘90 percent’’;
260

•S 1452 EAH

1 (2) by redesignating subsections (b) and (c) as

2 subsections (c) and (d), respectively, and by inserting

3 after subsection (a) the following new subsection:

4 ‘‘(b) AUTHORITY TO DETERMINE PERCENTAGE BY

5 WHICH TO DISCOUNT VALUE OF SERVICING RIGHTS.—The

6 appropriate Federal banking agencies may allow readily

7 marketable purchased mortgage servicing rights to be valued

8 at more than 90 percent of their fair market value but at

9 not more than 100 percent of such value, if such agencies

10 jointly make a finding that such valuation would not have

11 an adverse effect on the deposit insurance funds or the safety

12 and soundness of insured depository institutions.’’; and

13 (3) in subsection (c), by striking ‘‘and’’ and in14 serting ‘‘, ‘deposit insurance fund’, and’’.

15 Subtitle B—Streamlining Activities

16 of Institutions

17 SEC. 1211. CALL REPORT SIMPLIFICATION.

18 (a) MODERNIZATION OF CALL REPORT FILING AND

19 DISCLOSURE SYSTEM.—In order to reduce the administra20 tive requirements pertaining to bank reports of condition,

21 savings association financial reports, and bank holding

22 company consolidated and parent-only financial state23 ments, and to improve the timeliness of such reports and

24 statements, the Federal banking agencies shall—
261

•S 1452 EAH

1 (1) work jointly to develop a system under

2 which—

3 (A) insured depository institutions and

4 their affiliates may file such reports and state5 ments electronically; and

6 (B) the Federal banking agencies may make

7 such reports and statements available to the pub8 lic electronically; and

9 (2) not later than 1 year after the date of enact10 ment of this Act, report to the Congress and make rec11 ommendations for legislation that would enhance effi12 ciency for filers and users of such reports and state13 ments.

14 (b) UNIFORM REPORTS AND SIMPLIFICATION OF IN15 STRUCTIONS.—The Federal banking agencies shall, con16 sistent with the principles of safety and soundness, work

17 jointly—

18 (1) to adopt a single form for the filing of core

19 information required to be submitted under Federal

20 law to all such agencies in the reports and statements

21 referred to in subsection (a); and

22 (2) to simplify instructions accompanying such

23 reports and statements and to provide an index to the

24 instructions that is adequate to meet the needs of both

25 filers and users.
262

•S 1452 EAH

1 (c) REVIEW OF CALL REPORT SCHEDULE.—Each Fed2 eral banking agency shall—

3 (1) review the information required by schedules

4 supplementing the core information referred to in

5 subsection (b); and

6 (2) eliminate requirements that are not war7 ranted for reasons of safety and soundness or other

8 public purposes.

9 (d) DEFINITION.—In this section, the term ‘‘Federal

10 banking agency’’ has the same meaning as in section 3 of

11 the Federal Deposit Insurance Act (12 U.S.C. 1813).

12 Subtitle C—Streamlining Agency

13 Actions

14 SEC. 1221. ELIMINATION OF DUPLICATIVE DISCLOSURE OF

15 FAIR MARKET VALUE OF ASSETS AND LIABIL16 ITIES.

17 Section 37(a)(3) of the Federal Deposit Insurance Act

18 (12 U.S.C. 1831n(a)(3)) is amended by striking subpara19 graph (D).

20 SEC. 1222. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH

21 SURPLUS FUNDS.

22 Section 11(d)(10) of the Federal Deposit Insurance Act

23 (12 U.S.C. 1821(d)(10)) is amended by adding at the end

24 the following new subparagraph:
263

•S 1452 EAH

1 ‘‘(C) RULEMAKING AUTHORITY OF COR2 PORATION.—The Corporation may prescribe such

3 rules, including definitions of terms, as it deems

4 appropriate to establish a single uniform interest

5 rate for or to make payments of post insolvency

6 interest to creditors holding proven claims

7 against the receivership estates of insured Fed8 eral or State depository institutions following

9 satisfaction by the receiver of the principal

10 amount of all creditor claims.’’.

11 SEC. 1223. REPEAL OF REPORTING REQUIREMENT ON DIF12 FERENCES IN ACCOUNTING STANDARDS.

13 Section 37(c) of the Federal Deposit Insurance Act (12

14 U.S.C. 1831n(c)) is amended—

15 (1) in paragraph (1), by striking ‘‘Each’’ and all

16 that follows through ‘‘a report’’ and inserting ‘‘The

17 Federal banking agencies shall jointly submit an an18 nual report’’; and

19 (2) by inserting ‘‘any’’ before ‘‘such agency’’ each

20 place that term appears.

21 SEC. 1224. AGENCY REVIEW OF COMPETITIVE FACTORS IN

22 BANK MERGER ACT FILINGS.

23 (a) REPORT REQUIRED.—Section 18(c)(4) of the Fed24 eral Deposit Insurance Act (12 U.S.C. 1828(c)(4)) is

25 amended by striking ‘‘request reports’’ and all that follows
264

•S 1452 EAH

1 through the period at the end and inserting the following:

2 ‘‘request a report on the competitive factors involved from

3 the Attorney General. The report shall be furnished not later

4 than 30 calendar days after the date on which it is re5 quested, or not later than 10 calendar days after such date

6 if the requesting agency advises the Attorney General that

7 an emergency exists requiring expeditious action.’’.

8 (b) TIMING OF TRANSACTION.—Section 18(c)(6) of the

9 Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is

10 amended by striking the third sentence and inserting the

11 following: ‘‘If the agency has advised the Attorney General

12 of the existence of an emergency requiring expeditious ac13 tion and has requested a report on the competitive factors

14 within 10 days, the transaction may not be consummated

15 before the fifth calendar day after the date of approval by

16 the agency.’’.

17 (c) EVALUATION OF COMPETITIVE EFFECT.—

18 (1) AMENDMENTS TO THE BANK HOLDING COM19 PANY ACT OF 1956.—Section 3(c) of the Bank Holding

20 Company Act of 1956 (12 U.S.C. 1842(c)) is

21 amended—

22 (A) by adding at the end the following new

23 paragraph:

24 ‘‘(6) EVALUATION OF COMPETITIVE EFFECT.—

25 The Board may not disapprove of a transaction pur-
265

•S 1452 EAH

1 suant to paragraph (1)(B) unless the Board takes

2 into account, to the extent that data are readily

3 available—

4 ‘‘(A) competition from institutions, other

5 than depository institutions (as defined in sec6 tion 3 of the Federal Deposit Insurance Act),

7 that provide financial services;

8 ‘‘(B) efficiencies and cost savings that the

9 transaction may create;

10 ‘‘(C) deposits of the participants in the

11 transaction that are not derived from the rel12 evant market;

13 ‘‘(D) the capacity of savings associations to

14 make small business loans;

15 ‘‘(E) lending by institutions other than de16 pository institutions to small businesses; and

17 ‘‘(F) such other factors as the Board deems

18 relevant.’’; and

19 (B) in paragraph (1)(B), by striking ‘‘re20 straint or trade’’ and inserting ‘‘restraint of

21 trade’’.

22 (2) AMENDMENTS TO THE FEDERAL DEPOSIT IN23 SURANCE ACT.—Section 18(c)(5) of the Federal De24 posit Insurance Act (12 U.S.C. 1828(c)(5)) is

25 amended—
266

•S 1452 EAH

1 (A) by redesignating subparagraphs (A)

2 and (B) as clauses (i) and (ii), respectively;

3 (B) by inserting ‘‘(A)’’ after ‘‘(5)’’;

4 (C) by striking ‘‘In every case’’ and insert5 ing the following:

6 ‘‘(B) In every case under this subsection’’; and

7 (D) by adding at the end the following:

8 ‘‘(C) The responsible agency may not disapprove of a

9 transaction pursuant to subparagraph (A), unless the agen10 cy takes into account, to the extent that data are readily

11 available—

12 ‘‘(i) competition from institutions that provide

13 financial services;

14 ‘‘(ii) efficiencies and cost savings that the trans15 action may create;

16 ‘‘(iii) deposits of the participants in the trans17 action that are not derived from the relevant markets;

18 ‘‘(iv) the capacity of the institutions to make

19 small business loans;

20 ‘‘(v) lending by institutions other than deposi21 tory institutions to small businesses; and

22 ‘‘(vi) such other factors as the responsible agency

23 deems relevant.’’.
267

•S 1452 EAH

1 Subtitle D—Miscellaneous

2 SEC. 1231. FEDERAL RESERVE BOARD BUILDINGS.

3 The 3rd undesignated paragraph of section 10 of the

4 Federal Reserve Act (12 U.S.C. 243) is amended—

5 (1) by inserting after the 1st sentence the fol6 lowing new sentence: ‘‘After September 1, 2000, the

7 Board may also use such assessments to acquire, in

8 its own name, a site or building (in addition to the

9 facilities existing on such date) to provide for the per10 formance of the functions of the Board.’’; and

11 (2) in the sentences following the sentence added

12 by the amendment made by paragraph (1) of this

13 section—

14 (A) by striking ‘‘the site’’ and inserting

15 ‘‘any site’’; and

16 (B) by inserting ‘‘or buildings’’ after

17 ‘‘building’’ each place such term appears.

18 SEC. 1232. POSITIONS OF BOARD OF GOVERNORS OF FED19 ERAL RESERVE SYSTEM ON THE EXECUTIVE

20 SCHEDULE.

21 (a) IN GENERAL.—

22 (1) POSITIONS AT LEVEL I OF THE EXECUTIVE

23 SCHEDULE.—Section 5312 of title 5, United States

24 Code, is amended by adding at the end the following:
268

•S 1452 EAH

1 ‘‘Chairman, Board of Governors of the Federal

2 Reserve System.’’.

3 (2) POSITIONS AT LEVEL II OF THE EXECUTIVE

4 SCHEDULE.—Section 5313 of title 5, United States

5 Code, is amended—

6 (A) by striking ‘‘Chairman, Board of Gov7 ernors of the Federal Reserve System.’’; and

8 (B) by adding at the end the following:

9 ‘‘Members, Board of Governors of the Federal Re10 serve System.’’.

11 (3) POSITIONS AT LEVEL III OF THE EXECUTIVE

12 SCHEDULE.—Section 5314 of title 5, United States

13 Code, is amended by striking ‘‘Members, Board of

14 Governors of the Federal Reserve System.’’.

15 (b) EFFECTIVE DATE.—This section and the amend16 ments made by this section shall take effect on the first day

17 of the first pay period for the Chairman and Members of

18 the Board of Governors of the Federal Reserve System begin19 ning on or after the date of enactment of this Act.

20 SEC. 1233. EXTENSION OF TIME.

21 Section 6(a)(1) of the Federal Home Loan Bank Act

22 (12 U.S.C. 1426(a)(1)) is amended by striking ‘‘1 year’’

23 and inserting ‘‘18 months’’.
269

•S 1452 EAH

1 Subtitle E—Technical Corrections

2 SEC. 1241. TECHNICAL CORRECTION RELATING TO DEPOSIT

3 INSURANCE FUNDS.

4 (a) IN GENERAL.—Section 2707 of the Deposit Insur5 ance Funds Act of 1996 (Public Law 104–208; 110 Stat.

6 3009–496) is amended—

7 (1) by striking ‘‘7(b)(2)(C)’’ and inserting

8 ‘‘7(b)(2)(E)’’; and

9 (2) by striking ‘‘, as redesignated by section

10 2704(d)(6) of this subtitle’’.

11 (b) EFFECTIVE DATE.—The amendments made by sub12 section (a) shall be deemed to have the same effective date

13 as section 2707 of the Deposit Insurance Funds Act of 1996

14 (Public Law 104–208; 110 Stat. 3009–496).

15 SEC. 1242. RULES FOR CONTINUATION OF DEPOSIT INSUR16 ANCE FOR MEMBER BANKS CONVERTING

17 CHARTERS.

18 Section 8(o) of the Federal Deposit Insurance Act (12

19 U.S.C. 1818(o)) is amended in the second sentence, by strik20 ing ‘‘subsection (d) of section 4’’ and inserting ‘‘subsection

21 (c) or (d) of section 4’’.

22 SEC. 1243. AMENDMENTS TO THE REVISED STATUTES OF

23 THE UNITED STATES.

24 (a) WAIVER OF CITIZENSHIP REQUIREMENT FOR NA25 TIONAL BANK DIRECTORS.—Section 5146 of the Revised
270

•S 1452 EAH

1 Statutes of the United States (12 U.S.C. 72) is amended

2 in the first sentence, by inserting before the period ‘‘, and

3 waive the requirement of citizenship in the case of not more

4 than a minority of the total number of directors’’.

5 (b) TECHNICAL AMENDMENT TO THE REVISED STAT6 UTES.—Section 329 of the Revised Statutes of the United

7 States (12 U.S.C. 11) is amended by striking ‘‘to be inter8 ested in any association issuing national currency under

9 the laws of the United States’’ and inserting ‘‘to hold an

10 interest in any national bank’’.

11 (c) REPEAL OF UNNECESSARY CAPITAL AND SURPLUS

12 REQUIREMENT.—Section 5138 of the Revised Statutes of

13 the United States (12 U.S.C. 51) is repealed.

14 SEC. 1244. CONFORMING CHANGE TO THE INTERNATIONAL

15 BANKING ACT OF 1978.

16 Section 4(b) of the International Banking Act of 1978

17 (12 U.S.C. 3102(b)) is amended in the second sentence, by

18 striking paragraph (1) and by redesignating paragraphs

19 (2) through (4) as paragraphs (1) through (3), respectively.
271

•S 1452 EAH

Amend the title so as to read ‘‘An Act to expand

homeownership in the United States, and for other purposes.’’.

Attest:

Clerk.

106TH CONGRESS

2D SESSION S. 1452

AMENDMENTS